Financial market update

07 February 2013, Sweetcrude, Lagos – Local and international financial market update.

NIGERIA: The International Finance Corp. boosted the first sale of naira-denominated bonds by a foreign issuer as a rally in the debt of Africa’s biggest oil producer spurred orders for twice the amount initially offered. The World Bank unit raised 12 billion naira ($76.3 million), increasing the amount from 8 billion naira after orders came in at 20 billion naira, Jingdong Hua, vice-president and treasurer at the IFC, said in a phone interview from Washington on Tuesday.

EUROPE: The euro weakened as European Central Bank policy makers prepared to meet tomorrow amid renewed concern the debt crisis will worsen. The euro depreciated 0.5 percent to $1.3518 at 1:19 p.m. in New York on Wednesday.

INDIA: India’s benchmark stock index fell for a fifth day, led by lenders and industrial companies, amid concern sale of shares in government companies may sap funds from the market. The BSE India Sensitive Index lost 0.1 percent to 19,639.72 at the close on Wednesday.

CHINA: China’s central bank signaled concern at inflation risks and said that monetary easing by nations, including the U.S. and Japan, may push up commodity prices and make global capital flows more volatile.  The statistics bureau may report 2 percent inflation for January, a number distorted by the timing of a Lunar New Year holiday, according to the median estimate in a Bloomberg News survey of analysts. That number is due tomorrow. In December, the figure was 2.5 percent.

Bonds – Markets rallied on Wednesday with trade volumes up on yesterday’s high for the current period as activity has been relatively quiet for the last two weeks. Market direction however remains unchanged as yields continue to head south. Yields expected to continue the downward trend over the next few weeks.

Bills – Stable day yesterday for the most part. The long end came off towards the close about 20bps as some market participants feared lower rates at the auction.

Money Market – OBB and unsecured O/N rates dipped to 10.50% and 10.75% as the market opened liquid on Wednesday.

CBN WDAS AUCTION: CBN sold $112.82mio of the $120mio offered. Lowest intervention rate is 157.2974 (1% inclusive) rate maintained from the last auction. 12 banks went for the auction.

Indicative Currency Exchange Rates
                            Bid         Offer
EURUSD         1.3536        1.3546
GBPUSD          1.5638        1.5648
USDJPY            93.67         94.07
USDCHF          0.9129       0.9149
GBPEUR           1.1551        1.1561
USDZAR           8.8440      8.9440
USDNGN          156.90       157.65
JPYNGN            1.6750       1.7250
CHFNGN          171.87        175.87
EURNGN          212.38       216.38
GBPNGN           245.36       249.36
ZARNGN           17.74          19.74

Crude oil for March delivery rose 23 cents to $96.87 a barrel at 12:25 p.m. on the New York Mercantile Exchange on Wednesday.

Interest rates
NIBOR (%)                        LIBOR (%)
O/N               11.1250            USD 1 month         0.1992
7 Day             11.5417            USD 2 month         0.2460
30 Day          11.8333           USD 3 month         0.2930
60 Day          12.1250           USD 4 month         0.3451
90 Day          12.6250           USD 6 month        0.4679
USD 12 month       0.7695
Y/Y Consumer Inflation December 2012 :      12.00%
FX Reserves: 31 January 2013 (USD bn)        45.984
MPR                                                                        12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

·         Nigerian Foreign Exchange:

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