Financial market update

31 December 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Nigerian equities market defied its historical Christmas period lull last week to attain its highest peak in 2012, as investors relied on sound 2013 economic outlook to take position for possible gains in the new- year. At the resumption of trading last Thursday, the NSE benchmark Index gained 1.43 per cent as investors showed signs of optimism. And at the close of business last Friday exchange’s benchmark Index added 0.46 per cent following investors’ response to the positive economic outlooks.

EUROPE: German Chancellor Angela Merkel said the economic environment will be more difficult in 2013 than this year, and that Europe’s sovereign debt crisis is “far from over,” though progress has been made. Financial-market tensions have abated after the European Central Bank unveiled its Outright Monetary Transactions bond- buying plan on Sept. 6, pledging to spend as much money as needed to restore confidence in bond markets. The program provides support to debt-strapped nations as long as they sign up to economic reforms.

INDIA: India, the world’s third-largest coal user, cut imports of the fuel by 13 percent to 11.6 million metric tons in November, shipping data show.

CHINA: Copper led gains in metals and Chinese stocks headed for the highest close in six months as stronger-than-forecast data on China’s manufacturing tempered concern the U.S. will fail to avert automatic tax increases and spending cuts scheduled to take effect tomorrow. Copper climbed to a one-week high of $7,954 a metric ton in London, rising 4.7 percent this year.

Bonds – No trading activity till Thursday 27th December as the market shut for the holidays.

Bills – The Central bank came out last week Monday to offer OMO bills with tenors of 115 & 122 days, selling N37billion out of N70 billion at 13.399% on the 115day and N34.538b of N50billion at 13.44%. No secondary market activity on Monday, markets opened up again on the 27th.

Money Market – OBB and unsecured O/N rates closed on Monday at 11.00% and 11.25%.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD          1.3186          1.3196
GBPUSD          1.6151           1.6161
USDJPY            86.05            86.45
USDCHF          0.9154         0.9174
GBPEUR          1.2247          1.2257
USDZAR          8.4630         8.5630
USDNGN          156.11           156.61
JPYNGN          1.8142           1.8642
CHFNGN          170.54          174.54
EURNGN          205.85         209.85
GBPNGN          252.13          256.13
ZARNGN           18.45           20.45

Commodities                                                                                                                                                 Oil fluctuated in New York, heading for its first annual loss since 2008, as U.S. lawmakers tried to bridge disagreements over how to avert tax increases and spending cuts that threaten the world’s largest economy. Crude for February delivery was at $90.81 a barrel, up 1 cent, in electronic trading on the New York Mercantile Exchange at 2:30 p.m. in Singapore.

Interest rates
NIBOR (%)                       LIBOR (%)
O/N               10.7083         USD 1 month          0.2097
7 Day             11.5000         USD 2 month          0.2535
30 Day          13.1667          USD 3 month          0.3080
60 Day          13.6250         USD 4 month          0.3630
90 Day          13.9583         USD 6 month          0.5083
USD 12 month        0.8435
Y/Y Consumer Inflation August 2012 :               12.3%
FX Reserves: 24 December 2012 (USD bn)        44.256
MPR                                                                            12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria

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