19 December 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria is scheduled to export 65 crude cargoes in February, a partial loading program obtained by Bloomberg showed. Daily exports in Feb are scheduled to be 2.12 million barrels. Total shipments for Jan is planned at 2.16 million barrels a day. Loading programs are monthly schedules of crude shipments complied by field operators to allow buyers and sellers to plan their supply and trading activities.
USA: The current account deficit in the US narrowed in the third quarter helped by slowing imports. The gap shrank to USD107.5bn the smallest in almost two years from USD118.1bn. Cooling demand in the world’s largest economy is limiting imports at the same time that a slowdown in growht from Europe to China reduces overseas sales, a sign that it will get harder to keep shrinking the trade deficit.
CHINA: The World Bank said growth in East Asia will accelerate next year as China’s economy recovers reducing the need for policy makers to cut rates. East Asia is expected to grow 7.5% in 2012 and 7.9% in 2013 said the WB. They however state that the region still faces risks from Europe and the US where spending cuts and tax increases are due to take effect in Jan if lawmakers don’t resolve a fiscal dispute.
INDIA: To be more competitive in the tourism sector, India’s Ministry of Tourism announced that it will examine the impact of taxation on the sector and conduct an analysis to compare with that of neighboring countries. The assessment will aim to address criticism that the export industry which benefits from an exemption from service tax has an unfair advantage over the tourism sector.
Bonds – Quiet markets, auction comes today where offshore participation would determine whether we see yields back up or fall lower. With the size being offered on the 7 & 10year it is unlikely we will see the yields lower than current levels.
Bills – The 21/03/13 bill, which is being offered as the 91day tomorrow was bought in the markets today dipping 50bps from 13.34% to 12.80% to match where expectation is for the 91 day cut off at the auction. The CBN came out on Tuesday with offerings on the 19th and 27th as the calendar has expired two weeks ago.
Money Market – OBB and unsecured O/N rates dipped to close at 10.75% and 11.00% as the market received a boost from FAAC inflows of around N230billion hit the system today.
Indicative Currency Exchange Rates
EURUSD 1.3248 1.3258
GBPUSD 1.6261 1.6271
USDJPY 84.29 84.69
USDCHF 0.9118 0.9138
GBPEUR 1.2274 1.2284
USDZAR 8.4473 8.5473
USDNGN 157.78 158.53
JPYNGN 1.8719 1.9219
CHFNGN 173.04 177.04
EURNGN 209.03 213.03
GBPNGN 256.57 260.57
ZARNGN 18.68 19.43
Oil closed at its highest level in almost two weeks (Brent @ 108.84, WTI @ 87.89) as an API report showed that inventories fell by 1.75 million barrels – the most in more than 3 month.
NIBOR (%) LIBOR (%)
O/N 10.7083 USD 1 month 0.2107
7 Day 11.2917 USD 3 month 0.3090
30 Day 12.0417 USD 4 month 0.3621
60 Day 12.4583 USD 6 month 0.5085
90 Day 13.1667 USD 12 month 0.8425
Y/Y Consumer Inflation November 2012 : 12.3%
FX Reserves: 11 December 2012 (USD bn) 44.567
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria
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USD/NGN 158.35/45 157.80/90 158.20/30 157.98/08