Financial market update

18 September 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Nigerian Economy grew by 6.28% in the second quarter of this year, driven by non-oil sector growth, while inflation fell for the second straight month in August to 11.70% helped by tight monetary policy; the latest economic data from the National bureau of Statistics NBS have shown.

EUROPE: European stocks declined amid mounting concern that rising sovereign-bond yields will force Spain to seek external aid. The Stoxx Europe 600 Index dropped 0.5 percent to 273.68 at 8:04 a.m. in London.

CHINA: China’s stocks fell, capping the biggest two-day drop in almost six months, on concern escalating tensions with Japan over a territorial dispute will hurt trade and deepen an economic slowdown. The Shanghai Composite Index slumped 0.9 percent to 2,059.54 at the close, the lowest close since Sept. 6, while the CSI 300 Index declined 1 percent to 2,235.24.

INDIA: Indian stocks swung between gains and losses before the end of a deadline set by Prime Minister Manmohan Singh’s biggest coalition partner to reverse economic reforms announced last week. The BSE India Sensitive Index, or Sensex, fell 0.1 percent to 18,517.01 at 11:58 a.m. in Mumbai, changing directions nine times.

Bonds – Profit taking activities in the market on Monday subdued the expected impact on yields from the dip in headline inflation rate to 11.70%, the 110bps drop from 12.80% in July hit the market as a surprise to start the week. However, the 16.39% FGN JAN2022 and 15.10% FGN APR2017 was well offered all through the session by profit takers.

Bills – Volatile and illiquid session in the bills market yesterday in reaction to inflation news. Takers all out across board just to fill demand even though cash market lending rates remain high, yields expected to dip further across board.

Money Market – OBB and ON rate maintained at 16.00% and 16.50% respectively.

AMOUNT SOLD – $ 130.33 MIO
CBN CUT- OFF RATE – $/NGN 155.78

                           Hi                 Low             Close          Prev.Close
USD/NGN  157.80/90   157.40/50   157.65/75   157.50/60

Interest rates
NIBOR (%)                   LIBOR (%)
O/N              16.7083       USD 1 month           0.2190
7 Day            16.9167        USD 2 month          0.3015
30 Day         17.2083       USD 3 month           0.3808
60 Day         17.5833       USD 4 month           0.4814
90 Day         17.7917        USD 6 month           0.6669
USD 12 month          0.9920
Y/Y Consumer Inflation July 2012 :                  12.8%
FX Reserves: 10 September 2012 (USD bn)    41.167
MPR                                                                          12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria

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