Financial market update

12 February 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The continued retention of the single obligor limit, the maximum amount banks borrow to a single individuals or corporate at 20% of shareholders funds has raised concerns from bankers and other stakeholders. They say it is time the Central Bank reviews the single lending limit in view of the acute rise in shareholders’ funds in the aftermath of the regulatory induced industry consolidation. [BusinessDay]

EUROPE: European finance chiefs will seek to win back crisis-management momentum to navigate through emerging political pitfalls after markets signalled last week that the three-year crisis is far from over. Ministers from the 17-member euro area meet in Brussels today to discuss aid to Cyprus and Greece as a tightening election contest in Italy and a political scandal in Spain disrupt market calm. Group of 20 finance chiefs and central bankers will gather in Moscow Feb. 15-16.

INDIA: India’s industrial output unexpectedly slid in December for a second month as demand falters in an economy expanding at the weakest pace in a decade. Production at factories, utilities and mines fell 0.6 percent from a year earlier, compared with a revised 0.8 percent drop in November, the Central Statistical Office said in a statement in New Delhi today.

CHINA: China is to spend 120 billion yuan (19.25 billion dollars) on infrastructure and transport to boost flagging economic growth, state media reported on Monday. The Finance Ministry has allocated 70 billion yuan for projects including highways, waterways and docks, the official People’s Daily reported, with another 50 billion yuan budgeted to improve minor roads.

Bonds – Light sell off yesterday ahead of this week’s auction. Volumes relatively low in trading still, very cautious as there is a high possibility of excess demand pulling the auction cut off lower than current secondary levels.

Bills – Some selling on Monday especially on the short dated maturities. The longer dates more stable. No OMO activity yesterday.

Money Market – OBB and unsecured O/N rates went up to 13.50% and 13.75% to open the week.

Indicative Currency Exchange Rates
Bid               Offer

EURUSD          1.3372               1.3382
GBPUSD           1.5650               1.5660
USDJPY            94.11                 94.51
USDCHF           0.9212              0.9232
GBPEUR           1.1703                1.1713
USDZAR            8.9640             9.0640
USDNGN          156.97               157.72
JPYNGN            1.6679               1.7179
CHFNGN           170.40              174.40
EURNGN           209.90             213.90
GBPNGN            245.66             249.66
ZARNGN            17.51                 19.51

West Texas Intermediate oil traded near the highest level in more than a week after the biggest gain since January. U.S. crude stockpiles probably increased last week, a Bloomberg News survey shows. Crude for March delivery was at $96.89 a barrel, down 14 cents, in electronic trading on the New York Mercantile Exchange at 4:11 p.m. Sydney time.

Interest rates
NIBOR (%)                       LIBOR (%)

O/N                14.1250         USD 1 month             0.2022
7 Day              14.4167         USD 2 month             0.2475
30 Day           14.7500         USD 3 month            0.2931
60 Day           15.0833         USD 4 month            0.3456
90 Day           15.4167          USD 6 month            0.4649
USD 12 month          0.7650
Y/Y Consumer Inflation December 2012 :         12.00%
FX Reserves: 02 February 2013 (USD bn)         46.219
MPR                                                                           12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi               Low          Close         Prev.Close
 157.33/43    157.22/32   157.28/38     157..20/30

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