Financial market update

16 July 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The rally in the equities segment of the Nigerian Stock Exchange, which began last week, continued on Thursday, with major indices closing positive. The market capitalization of the listed equities gained N77bn or 1.1 per cent from N7.104tn on Wednesday, to close at N7.181tn. Similarly, the NSE’s All-Share Index was up by 239.25 basis points or 1.1 per cent to close at 22,492.96 points, up from 22,253.71 points recorded the previous day. The NSE-30 Index rose by 0.8 per cent or 8.26 points from 1,037.41points to close at 1,045.67 points.

CHINA: Friday’s National Bureau of Statistics report showed China’s growth slowed for a sixth consecutive quarter as trade and manufacturing decelerated. Last quarter’s 7.6 percent growth rate compared with an 8.1 percent expansion in the previous period and the 7.7 percent forecast by economists.

INDIA: Indian exports fell for the third time in four months in June, while a trade deficit that has pressured the rupee was the narrowest in more than a year as imports slid, government figures showed. Merchandise shipments fell 5.45% from a year earlier to $25.06 billion, Director General of Foreign Trade Anup Pujari said at a briefing in New Delhi on Friday. Imports slipped 13.46% to $35.3 billion, leaving a trade deficit of $10.3 billion, he said. The data are provisional.

Bonds – Demand remained weak on Friday as yields closed higher across the offered tenors on the curve, after initial interest on the buy side at the start of the week, yields steadily traced its levels back up closing 7bps higher, auction this week expected to inject ngn75 bio of additional stock into the market at a time traders remain skeptic on interest rate direction.

Bills – T-bills continued to be bought on Friday across board in a sustained reaction to surprise lower cut-off rates at last week’s auction, most trades recorded on the 90 – 150dy bills, this trend isn’t expected to run into the new week as June Inflation is expected to be announced.

Money Market – OBB and O/N rate down 25bps at the close of last week to 15.00 and 15.50%.

Hi             Low        Close        Prev.Close
   162.17/27   161.75/85  162.03/13   162.00/10

NIBOR (%)                             LIBOR (%)
O/N                   14.7500            USD 1 month              0.2478
7 Day                 15.2500            USD 2 month             0.3408
30 Day              15.6333             USD 3 month             0.4551
60 Day              16.0417             USD 4 month             0.5531
90 Day              16.2917              USD 6 month            0.7284
USD 12 month          1.0670
Y/Y Consumer Inflation May 2012 :                              12.7%
FX Reserves: 12 July 2012 (USD bn)                             36.450
MPR                                                                                      12.00%
Source: FMD and CBN

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