Financial market update

11 April 2012, Sweetcrrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s Eurobond yields rose to the highest in more than two weeks as the price of oil, the country’s main export, retreated. Borrowing costs on the West African nation’s $500 million of dollar bonds rose six basis points to 5.464% as of 4.13pm in London yesterday, the highest since March 23. The currency slid less than 0.1% to 157.67 per dollar.

EUROPE: Spain’s efforts to calm investors with 10 billion euros ($13 billion) of budget cuts in education and health failed to stem concerns the nation may be the fourth euro member to need a bailout. The yield on Spain’s 10-year benchmark bond surged 20 basis points to 5.95 percent yesterday as Economy Minister Luis de Guindos declined to rule out a rescue for Spain and Bank of Spain Governor Miguel Angel Fernandez Ordonez said the nation’s lenders may need additional capital if the economy weakens more than expected.

INDIA: India’s benchmark stock index rose for the first time in three days, led by consumer-goods makers, amid optimism their earnings will withstand costlier credit and a slowdown in the economy better than other companies. The BSE India Sensitive Index rose 0.1 percent to 17,243.84 at the close on Tuesday. The gauge has risen 12% this year as foreigners have poured a net $9.1 billion into stocks even as the nation’s economy grew at the slowest pace in almost three years last quarter.

US: Job openings in the U.S. increased in February and hiring climbed to the highest level in more than three years, signalling employers turned more optimistic about the economic outlook. The number of positions waiting to be filled totalled 3.5 million in February, up from a revised 3.48 million the prior month that was higher than previously estimated, the Labour Department said yesterday in a statement posted on its website.

Bonds – Trading activity and volume picked up in Tuesday’s session on the buy-side, increased onshore demand across the curve pulled yields down about 10 – 15bps, market reacted to unconfirmed news of a drop in the frequency of primary bond auctions conducted in the market which implies a likely drop in supply if volumes decline as well.

Bills – Markets traded fairly flat across board ahead of today’s primary auction, activities will pick up after the auction today due to the significant volume on offer at a single auction totaling ngn183 bio.

Money Market – OBB and Unsecured rates down to 13.00% and 13.50% respectively, recline in cash lending rates due to another inflow of ngn108 bio yesterday from the excess crude account, money market remains fairly liquid.

                             Hi            Low            Close         Prev.Close
USD/NGN     157.60/70  157.36/46   157.40/50    157.56/66

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Y/Y Consumer Inflation February 2012 :




FX Reserves: 04 April 2012 (USD bn)








Source: FMD and CBN


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