Finanial market update

11 October 2012, Sweetcrude, Lagos – Local and international financial market update.

Nigerian Foreign Exchange- The Central Bank offered and sold USD 120 million a yesterday’s CBN auction. They maintained a marginal rate of 157.3075 (including the 1% commission)

Nigerian Bonds – Relatively flat in terms of closing yield levels. Intraday, there was some volatility with the 22s trading close to 14.00% levels but quickly coming off to close at 13.70% as there is clearly interest at that level and slightly lower.

Nigerian Treasury Bills – Early rally in the market in light of the yesterday’s auction, the long dated bills saw a sell off eventually retracing some of the previous day’s moves by going up 70bps on average to close the day. Looking to the auction results to provide more color short term.

Nigerian Money Market – OBB and unsecured O/N rates went up 100bps to close at 11.50% & 12.00%

EUR: The Euro fell as uncertainty over Spain’s Bailout prospects continued to spook sentiment, which was also dented by a drop in share markets due to worries about slowing global growth. The euro fell to its lowest since Oct 1st of $1.2825 before recovering to trade down 0.1% at $1.2864

CNY: The yuan strengthened against the dollar, briefly hitting an intraday record high after the People’s Bank of China (PBOC) set its yuan midpoint stronger than expected, signalling it may tolerate slight appreciation of the currency.

ZAR: South Africa’s Rand was firmer against the dollar in the early Thursday trade, getting a reprieve from the berating that took it to a 3 ½ year ;low this week amid fears about the effects on growth of prolonged mining and trucker’s strikes.

Indicative Currency Exchange Rates
                            Bid         Offer
EURUSD          1.2845      1.2895
GBPUSD           1.5980     1.6030
USDJPY            77.75        78.25
USDCHF           0.9360    0.9410
GBPEUR           1.2420     1.2470
USDZAR           8.6500    8.7000
USDNGN          156.90     157.40
JPYNGN           2.0051     2.0244
CHFNGN          166.54     168.36
EURNGN          201.34     203.17
GBPNGN          250.53     252.51
ZARNGN          17.83        18.40


Brent crude rose towards $ 115 as rising tensions in the Middle East stoked supply fears. US crude edged up 27 cents to USD 91.52 after dropping more than 1% in the previous session.

Interest rates
NIBOR (%)                        LIBOR (%)
O/N             11.5417           USD 1 month         0.21400
7 Day           12.2083         USD 2 month         0.28000
30 Day        13.7083          USD 3 month        0.34275
60 Day        14.0000         USD 4 month        0.43260
90 Day        14.2083          USD 6 month        0.60790
USD 12 month      0.94450
Y/Y Consumer Inflation August 2012 :            11.7%
FX Reserves: 04 October 2012 (USD bn)        41.48
MPR                                                                         12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria

                                Hi             Low        Close      Prev.Close
USD/NGN      157.30/40  157.11/21  157.15/25  157.25/35

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