Financial market update

28 February 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: As part of efforts to transform the agricultural sector, the Federal Government and the Central Bank of Nigeria (CBN) have provided N60 billion loans for agro- dealers at nine per cent interest rate in line with the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL). Permanent Secretary, Ministry of Agriculture and Rural Development, Mrs. Ibukun Odusote said the loans would allow small scale input retailers to have access to finance so as to be able to purchase seedlings and fertilisers.

EUROPE: European stock-index futures advanced, indicating the region’s benchmark equity index will rebound from yesterday’s selloff, before Italy looks to auction as much as $5 billion worth of long-term debt today. Futures on the Euro Stoxx 50 Index expiring in March added 0.4 percent to 2,580 at 7:07 a.m. in London.

INDIA: Indian stocks swung between gains and losses before the expiry of the February derivatives contract and the presentation of the annual federal budget tomorrow. Financial stocks rose, while technology shares fell. The S&P BSE Sensex index added 0.2 percent to 19,051.98 at 10:54 a.m. in Mumbai, after changing direction at least five times.

CHINA: Chinese stocks will resume this year’s rally as the government works to shore up the nation’s economic recovery, according to China Asset Management Co., the biggest fund manager. The Shanghai Composite Index dropped 1.4 percent yesterday, extending its February drop to 3.9 percent, after back-to-back gains in January and December. China’s new leaders are mulling plans to revamp the central government this week to bolster the economy as it emerges from a seven-quarter slowdown, the official Xinhua News Agency reported Feb. 23.

Bonds – Volatile session in the markets yesterday. Bearish sentiments for most of the day, yields closed higher than the open.

Bills – Market still relatively quiet yesterday, up 10bps as the short end selling and bearish sentiment linger for another day.

Money Market – OBB and unsecured O/N rates stable at 10.25% and 10.50% yesterday. Market is still fairly liquid.

Indicative Currency Exchange Rates
                        Bid           Offer
EURUSD       1.3090       1.3100
GBPUSD        1.5101        1.5111
USDJPY          91.77          92.17
USDCHF        0.9312       0.9332
GBPEUR         1.1537        1.1547
USDZAR         8.8255      8.9255
USDNGN         156.95      157.70
JPYNGN           1.7103      1.7603
CHFNGN          168.55      172.55
EURNGN          205.45     209.45
GBPNGN          237.01      241.01
ZARNGN           17.78        19.78

West Texas Intermediate oil traded near the lowest level this year after an industry report showed U.S. crude stockpiles increased for the seventh week in eight. WTI for April delivery was at $92.85, up 22 cents at 2:05 p.m. Singapore time in electronic trading on the New York Mercantile Exchange.

Interest rates
NIBOR (%)                    LIBOR (%)

O/N               10.6250       USD 1 month        0.2037
7 Day              11.0417       USD 2 month        0.2430
30 Day           12.0000      USD 3 month        0.2866
60 Day           12.6250       USD 4 month        0.3406
90 Day            13.1250       USD 6 month        0.4569
USD 12 month      0.7525
Y/Y Consumer Inflation January 2013 :        9.00%
FX Reserves: 21 February 2013 (USD bn)    47.017
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    157.75/85   157.30/40    157.75/85     157.35/45

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