10 October 2012, Sweetcrude, Lagos – Local and international financial market update. Nigerian News: President Goodluck Jonathan is expected to deliver the 2013 budget to parliament. Ministers agreed in August to increase spending by five percent but reduce the fiscal deficit in next year.
Nigeria’s attorney general said on Tuesday that the country would not appeal an international ruling that handed the oil-rich Bakassi peninsula to its neighbor Cameron ten years ago, despite calls from the senate to re-open the dispute.
Nigerian FGN Bonds – Yields continued to trade up yesterday as the 16.39% Jan 22s which went up 47bps yesterday went up another 30bps yesterday. The sell off coming as the auction approaches which is set to increase supply on the 22s, something which the market had not previously expected. Market is expected to continue to trade volatile and swing as yields are beginning to look interesting.
Nigerian Treasury Bills – With the auction coming up today the bill market was also quite volatile, an initial sell off yesterday on the long end was quickly followed by a rally which pulled the Sept 2013 in particular down an average 70bps.
Nigerian Money Market – OBB and unsecured O/N rates went up yesterday 100bps to close at 11.50% & 12.00%
ZAR: South Africa’s rand firmed more than 1.4 percent against the dollar, on track for its first daily gain in five trading session, as investors responded to news that some of the thousands of striking truckers are returning to work.
EUR: the Euro dropped to its lowest since Oct 1 against the dollar, as investors shield away from risk on concerns about weak earnings in the United States due to slowing global growth.
GBP: British financial regulation will be tailored to the needs of the wider economy under changes coming in next year. Sterling fell to a one-month low against the dollar after data showed a bigger than expected fall in manufacturing output and a deterioration in the trade deficit.
Indicative Currency Exchange Rates
EURUSD 1.2850 1.2900
GBPUSD 1.5950 1.6000
USDJPY 78.00 78.50
USDCHF 0.9400 0.9450
GBPEUR 1.2400 1.2450
USDZAR 8.6500 8.7000
USDNGN 156.00 156.50
JPYNGN 1.9700 2.0300
CHFNGN 165.22 169.22
EURNGN 200.56 206.06
GBPNGN 248.32 255.82
ZARNGN 16.97 18.97
Brent crude slipped near $114 after a jump of 2 percent, with a cloudy economic outlook offsetting fears about disruptions to Middle east oil supply as a conflict between turkey and Syria escalated.
NIBOR (%) LIBOR (%)
O/N 11.3333 USD 1 month 0.21550
7 Day 11.9583 USD 2 month 0.28350
30 Day 13.0000 USD 3 month 0.34675
60 Day 13.8333 USD 4 month 0.43460
90 Day 14.1250 USD 6 month 0.61540
USD 12 month 0.95200
Y/Y Consumer Inflation August 2012 : 11.7%
FX Reserves: 08 October 2012 (USD bn) 41.60
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.
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USD/NGN 157.25/35 156.90/00 157.25/35 157.15/25