Financial market update

15 January 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Central Bank of Nigeria (CBN) has announced that the Nigeria aggregate foreign capital inflows in Q4 2012 stood at $6.07 billion against $3.43 billion and $3.24 billion recorded in Q2, 2012 and Q3, 2011. This shows increases of 87.39 and 77.09 per cent, respectively. In its latest report, the CBN said of the total capital inflows, foreign direct investment (FDI) accounted for 23.79 per cent while portfolio investment (PI) accounted for 76.21 per cent. [Daily Trust].

EUROPE: European stock-index futures fell on growing concern about the U.S. debt ceiling, and before a report that may show Germany’s economy expanded at the slowest pace since 2005. Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, fell 0.2 percent to 2,706 at 7:07 a.m. in London.

INDIA: India’s benchmark equities index surpassed 20,000 for the first time in more than two years, as foreign funds increased their holdings of the nation’s shares amid government measures to revive economic growth. The BSE India Sensitive Index, or Sensex, rose 0.2 percent to 19,940.09 at 11:01 a.m. Mumbai time, poised for the highest close since Jan. 6, 2011.

CHINA: The Shanghai Composite Index climbed 0.3 percent to 2,317.85 as of 1:13 p.m. local time, heading for the highest close since June 18. It jumped 3.1 percent yesterday after the head of the securities regulator said the government can increase by 10 times the size of two investment programs that allow foreign investors to buy securities.

Bonds – Bond yields traded flat in yesterday’s session as market awaits the bond auction calendar for Q1 and offer volume for the month.

Bills – Trading volumes up due to demand for short dated bills at fairly decent yield levels in Monday’s session. Market however, remains cautious on the expectation of OMO issuance anytime to absorb any idle cash in the money market.

Money Market – OBB and O/N rate up 75bps to 13.00% and 13.25% respectively, liquidity level gradually declining.

CBN WDAS AUCTION: CBN offered $50mio and sold $11.82mio. The local unit appreciated at the WDAS window to 157.2772 [1% commission incl.] from 157.3277 [also 1% commission incl.]. This is the first move since 12 Dec.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD         1.3351           1.3361
GBPUSD         1.6083          1.6093
USDJPY          88.78            89.18
USDCHF         0.9225         0.9245
GBPEUR         1.2044          1.2054
USDZAR         8.7336          8.8336
USDNGN        156.50          157.00
JPYNGN         1.7628          1.8128
CHFNGN        169.65          173.65
EURNGN        208.94        212.94
GBPNGN        251.70          255.70
ZARNGN         17.92            19.92

Oil fell in New York as investors speculated that a rally to the highest
level in almost four months was excessive amid rising stockpiles and concern the U.S. economic recovery may be derailed by a budget dispute. Crude for February delivery dropped as much as 43 cents to $93.71 a barrel in electronic trading on the New York Mercantile Exchange and was at $93.82 at 2:24 p.m. Singapore time.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              13.4167         USD 1 month             0.2057
7 Day            13.6667         USD 2 month            0.2500
30 Day         14.0000        USD 3 month            0.3040
60 Day         14.3333         USD 4 month            0.3541
90 Day         14.7500         USD 6 month           0.4910
USD 12 month          0.8190
Y/Y Consumer Inflation November 2012 :         12.3%
FX Reserves: 10 January 2013 (USD bn)            44.678
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    157.10/20   156.40/50   156.70/80   156.40/50

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