Financial market update

09 November 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigeria – Nigeria’s credit rating was upgraded on Wednesday by Standard & Poor’s, a globally renowned ratings agency. In addition Nigeria is now being rated by Moody’s as well. This follows the Central Bank of Nigeria’s drive for improved financial stability and the country’s optimism in the banking and electricity sector reforms. China and India. It is Africa’s second-largest economy after South Africa. The ratings agency raised Nigeria’s long-term foreign and local currency sovereign credit rating to BB- with a stable outlook, three notches below investment grade, from B+.

China – China’s factory output and retail sales exceeded forecasts and inflation unexpectedly cooled to the slowest pace in 33 months signaling the government is boosting growth without driving a rebound in prices. Industrial production rose 9.6% in Oct from an year earlier. Retails sales growth of 14.5% picked up from Sep’s 14.2% and the CPI increased 1.7%

USA – Temporary employment is contributing less to job creating in the US after buoying the labor market in the first six months of the year a sign employers are more confident about the durability of the economic expansion. The monthly change in the number of people on payroll of temporary help services business averaged 2.2% of the monthly against in total non farm payrolls during the July-October period. This is below all most 19% in the first half of 2012.

“Bonds – Local and foreign investor confidence in the Nigerian markets received a boost on the back of S&P upgrading Nigeria’s outlook and ratings coupled with news of Barclays adding Nigeria to its emerging markets index. As a direct result yields have dipped for a third day this week and would possibly dip further.

Bills – The bill markets also rallied yesterday as a result of the sentiment which came out of the auction. Rates came off around 40bps on average as demand fed into the markets on the back of the positive economic outlook on Nigeria highlighted by S&P.

Money Market – OBB and unsecured O/N rates at 11.50% & 12.00% to close today.”

Indicative Currency Exchange Rates
Bid            Offer

EURUSD             1.2767          1.2777
GBPUSD             1.6003          1.6013
USDJPY               79.53            79.93
USDCHF             0.9443          0.9463
GBPEUR             1.2533           1.2543
USDZAR             8.6872          8.7872
USDNGN            157.45           157.95
JPYNGN             1.9798           2.0298
CHFNGN            166.74           170.74
EURNGN            201.02          205.02
GBPNGN             251.97          255.97
ZARNGN             18.12             20.12

WTI settled lower at $84.96/bbl (- $0.13) while Brent went up to $107.25/bbl (+$0.43), bringing the WTI-Brent premium spread to $22.16 yesterday. Oil rose 0.8% after jobless claims fell to 355k and Greek parliament passed a bill on pension, wage and benefits cut. Consumer confidence also climbed to highest level in four years, signaling positive signs on the economy.

Interest rates
NIBOR (%)                   LIBOR (%)

O/N              12.1667       USD 1 month           0.2090
7 Day            12.7917       USD 2 month           0.2595
30 Day         13.8250      USD 3 month           0.3100
60 Day         14.2583      USD 6 month           0.5265
90 Day         14.7667       USD 12 month         0.8620
Y/Y Consumer Inflation September 2012 :       11.3%
FX Reserves: 11 November 2012 (USD bn)       42.72
MPR                                                                           12.00%
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria,
Financial Market Dealers Association Standard Chartered Bank Nigeria

                            Hi             Low           Close       Prev.Close
USD/NGN  157.35/45   157.20/30   157.35/45   157.35/45

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