Financial market update

22 August 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigerian Consumer Inflation eases to 12.8% YOY in July 2012 from 12.905 in June, Nigerian Food Inflation however rose to 12.10% YOY from 12.00%. STATS BUREAU.
Nigeria, Africa’s largest oil producer, plans to increase Bonny Light daily crude exports for October by 49% from September to 236,613 barrels a day, according to a loading program obtained by Bloomberg News.

EUROPE: The euro was at $1.2463 after touching $1.2488 yesterday, the highest level since July 5. German Chancellor Angela Merkel and French President Francois Hollande meet tomorrow to discuss Europe’s fiscal crisis, and both are set to talk separately with Greece’s Prime Minister Antonis Samaras later this week. Concessions are possible for Greece if Samaras shows a willingness to meet the main targets set out in his country’s bailout program, a senior lawmaker with Merkel’s government said yesterday.

INDIA: Indian stocks fell amid concern the government will struggle to implement measures to revive growth. The BSE India Sensitive Index, or Sensex, lost 0.3 percent to 17,831.19 at 12:06 p.m. in Mumbai, bound for its first loss in three days.

CHINA: China’s Premier Wen Jiabao is overseeing $23 billion of investment in new mills to stimulate auto-making and housing, which will boost demand for iron ore and help revive the nation’s flagging economy, which grew at the slowest pace since 2009 in the second quarter.

Bonds – Another bullish session in the bond market on Friday with increased interests from offshore investors. Yields expected to dip further.

Bills – Liquidity inflows re-ignited some buying interest in the market on Friday, about 30bps off on yields across board.

Market reopens mid this week straight into the auction where the 91dy and 182dy bills will be offered.

Money Market – Cash takers won in Friday’s session ahead of the long weekend as FAAC funds were disbursed midday, lending rates crash to 13.00% on OBB and 13.50%.

                               Hi             Low          Close       Prev.Close
USD/NGN   158.00/10   156.95/05   158.00/10   157.00/10

Interest rates

NIBOR (%)                    LIBOR (%)
O/N                20.8333     USD 1 month          0.2375
7 Day              20.2500     USD 2 month         0.3340
30 Day            21.9583     USD 3 month         0.4335
60 Day            22.2917      USD 4 month        0.5404
90 Day            22.7500     USD 6 month         0.7182
USD 12 month       1.0420
Y/Y Consumer Inflation June 2012 :                 12.9%
FX Reserves: 16 August 2012 (USD bn)            37.021
MPR                                                                           12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association and Standard Chartered Bank Nigeria.

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