Financial market update

24 December 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The investment programme of the Nigerian Sovereign Wealth Investment Authority (NSIA) will finally begin in March 2013. The ministry of finance which confirmed the development said the fund is making progress towards becoming fully operational. The NSIA was created for three reasons: to build a savings base for the Nigerian People; Enhance the Development of Nigerian Infrastructure, and Provide Stabilization Support in times of economic stress.

US: U.S. stock futures declined amid speculation American lawmakers will miss a year-end budget deadline. Futures for Standard & Poor’s 500 Index dropped 0.5 percent as of 1:59 p.m. in Hong Kong. Time is running out for U.S. lawmakers and President Barack Obama to agree on a budget deal by year end to avoid triggering more than $600 billion in tax increases and spending cuts, Senator Joseph Lieberman said.

INDIA: India’s rupee dropped, extending last week’s biggest decline in more than a month, on speculation importers stepped up dollar purchases to pay bills. The rupee declined 0.2 percent to 55.1800 per dollar as of 9:23 a.m. in Mumbai, according to data compiled by Bloomberg. The currency fell 1.1 percent last week, the biggest loss since the five days through Nov. 9.

CHINA: China’s stocks rose, extending a weekly gain, as rallies for automakers and technology companies overshadowed losses for consumer-staples producers. The Shanghai Composite Index rose 0.3 percent to 2,159.05 at the close, adding to a 0.1 percent gain last week.

Bonds – Market remained quiet as the holidays drew close, some slight selling in markets on Friday. Though volumes were low, there is still liquidity in markets, though it is expected to be thin over the next week.

Bills – Bearish session on Friday, the new one year bill was listed on Friday and it was sold up 21bps above where it cut at the auction on Wednesday.

Money Market – OBB and unsecured O/N rates stable on Friday at 10.25% and 10.50% as the market remains liquid.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD      1.3192           1.3202
GBPUSD       1.6179           1.6189
USDJPY        84.35            84.75
USDCHF       0.9156          0.9176
GBPEUR       1.2261           1.2271
USDZAR       8.5717           8.6717
USDNGN      156.95          157.45
JPYNGN       1.8607          1.9107
CHFNGN      171.42           175.42
EURNGN      207.05          211.05
GBPNGN       253.93         257.93
ZARNGN       18.31            20.31

Oil traded near the lowest level in almost a week in New York on concern U.S. lawmakers may fail to avert spending cuts and tax increases that threaten the economy of the world’s biggest crude consumer. Crude for February delivery was at $88.52 a barrel, down 14 cents, in electronic trading on the New York Mercantile
Exchange at 1:18 p.m. Singapore time.

Interest rates
NIBOR (%)                   LIBOR (%)

O/N              10.5000     USD 1 month         0.2097
7 Day            11.0000      USD 2 month        0.2540
30 Day         12.0000      USD 3 month        0.3100
60 Day         12.4167        USD 4 month        0.3626
90 Day         12.9167        USD 6 month         0.5102
USD 12 month       0.8430
Y/Y Consumer Inflation August 2012 :           12.3%
FX Reserves: 28 September 2012 (USD bn)  44.453
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    157.25/35   157.00/10  157.20/30   157.27/37

About the Author