19 June 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s naira appreciated for the first time in four days as the central bank sold dollars and gains by pro-bailout parties in Greek elections boosted demand for riskier assets. The naira gained 0.5% to 163.73 per dollar on the interbank market at close in Lagos yesterday, the most since June 6.
EUROPE: European stocks climbed for a third day as Group of 20 leaders debated the region’s financial crisis and Greek policy makers continued talks to form a government. The Stoxx Europe 600 Index added 0.3 percent to 245.17 at 8:06 a.m. in London. The benchmark gauge has still dropped 10 percent from its peak on March 16 amid concern that the euro area’s sovereign-debt crisis has triggered a slowdown in global economic growth.
CHINA: China’s commerce minister said his nation’s economy is heading for a rebound this month following government measures to support growth, adding to signals of confidence among officials that the slowdown is ebbing. The comments build on weekend remarks by President Hu Jintao that China will “maintain steady and robust growth” and by a central bank adviser who predicted the economy will bottom out this quarter. While China has indicated it won’t embrace the scale of the record stimulus unleashed in 2008, stabilizing its expansion rate would avert a greater drag on a global rebound hurt by Europe’s crisis and elevated U.S. unemployment.
Bonds – Continued quiet markets on Monday, yields stable across the curve only inching up slightly on the short to medium end.
Bills – Bearish yesterday across the maturities, the short end selling off between 25-30bps and the medium to long dated securities up an average 10bps. Inflation data is released today and this will dictate the yield direction ahead of the auction on Wednesday.
Money Market – OBB and unsecured O/N rates up to 14.50% & 15.50%. Liquidity levels still relatively low.
CBN WDAS AUCTION
Offered: $400mio Sold: $400mio
Marginal rate: 155.90
Weighted average: 155.98
No. of Banks: 18
Hi Low Close Prev.Close
USD/NGN 163.35/45 161.15/25 161.50/60 163.10/20
|NIBOR (%)||LIBOR (%)|
|O/N||15.2917||USD 1 month||0.2438|
|7 Day||15.5417||USD 2 month||0.3478|
|30 Day||16.0000||USD 3 month||0.4679|
|60 Day||16.3750||USD 4 month||0.5681|
|90 Day||16.7083||USD 6 month||0.7369|
|USD 12 month||1.0695|
|Y/Y Consumer Inflation April 2012 :||12.9%|
|FX Reserves: 15 June 2012 (USD bn)||37.461|
|Source: FMD and CBN|