Financial market update

07 January 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigerian businesses are daring to hope for a cut in the monetary policy rate (MPR), by Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi in 2013 to spur economic activity, on the back of a benign inflation outlook. The National Bureau of Statistics (NBS) announced last month that inflation rose to 12.3 percent year on year(y/y) in November, however analysts forecast single digit inflation by the middle of 2013. BUSINESSDAY

EUROPE: European Central Bank President Mario Draghi will turn his attention to nursing the euro region back to economic health this week as the urgency to deploy crisis measures recedes after three years. Draghi’s Governing Council, which sits for its first session this year on Jan. 10, will seek to extend the calm it’s instilled on markets with last year’s pledge to do anything in its power to end the crisis, economists said.

INDIA: Most Indian stocks rose as gains among auto and energy shares offset declines by lenders. Nine stocks advanced for every five that fell in the BSE India Sensitive Index, or Sensex, which was little changed at 19,795.09 at 11:33 a.m. Mumbai time. Its trading volumes were 23 percent lower than the 30-day average for this time of the day.

CHINA: China’s sovereign wealth fund plans to buy a stake in German auto firm Daimler AG, state media said on Monday. “Recently, an insider confirmed that the China Investment Corporation is going to buy 4-10 per cent of shares in Daimler,” the official People’s Daily newspaper reported on its website.

Bonds – Takers continued to hit hard on available stock in the market on Friday as bond yields dipped for the third straight session of the year. Supply for the first quarter remained unknown as no issuance calendar is available and market positions for early risk unload onto respective portfolios, trend to be sustained in the new week.

Bills – OMO issuance which has increased supply of bill instruments into the secondary market pushed yields back up in Friday’s session. A total of ngn539.78 bio had been issued last week via OMO bills . There will also be a primary auction this week where ngn166.935 bio will be offered across the 91dy,182dy and 364dy bills.

Money Market – OBB and O/N rate trend back up to 11.00% and 11.25% as the mop-up exercise of the CBN continues.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD        1.3039         1.3049
GBPUSD        1.6045         1.6055
USDJPY            87.74         88.14
USDCHF        0.9267         0.9287
GBPEUR        1.2303         1.2313
USDZAR        8.5868        8.6868
USDNGN       156.80         157.30
JPYNGN         1.7871          1.8371
CHFNGN        169.20         173.20
EURNGN       204.45         208.45
GBPNGN        251.59         255.59
ZARNGN         18.26            20.26

Oil fluctuated in New York after capping the biggest weekly advance in almost four months amid signs of economic growth in the U.S., the world’s largest crude- consuming nation. Crude for February delivery was at $92.81 a barrel, down 28 cents, in electronic trading on the New York Mercantile Exchange at 2:37 p.m. Singapore time.

Interest rate                                                                                                                               NIBOR (%)                       LIBOR (%)
O/N              11.1250         USD 1 month          0.2077
7 Day            11.8750        USD 2 month          0.2520
30 Day         13.3750        USD 3 month          0.3050
60 Day         13.8333        USD 4 month         0.3611
90 Day         14.1667         USD 6 month         0.5013
USD 12 month       0.8385
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

                            Hi              Low          Close       Prev.Close
USD/NGN  157.20/30   156.15/25   157.00/10   156.25/35

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