Financial market update

01 March 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: To ensure adequate supply of food, power generation and improved water supply and sanitation, the Federal Government has inaugurated new management teams of River Basin Development Authorities (RBDAs). The RBDAs are the main parastatals of the Ministry of Water Resources established since 1976 to ensure that a nationwide systematic and consistent programme of integrated water resources development and management is achieved for the socio- economic development of the nation through their project executions especially among rural communities.

EUROPE: European stock-index futures declined, after the Stoxx Europe 600 Index rose for a ninth straight month, as $85 billion of spending cuts threatened to slow the world’s largest economy and Chinese manufacturing eased. Futures on the Euro Stoxx 50 Index expiring this month fell 0.5 percent to 2,622 at 7:05 a.m. in London.

INDIA: Indian stocks advanced, paring the weekly decline, led by lenders and carmakers.The S&P BSE Sensex index climbed 0.4 percent to 18,939.07 at 11:26 a.m. in Mumbai, paring the weekly loss to 2 percent. The 30-stock gauge fell 5.2 percent last month, the sharpest monthly drop since May.

CHINA: Two Chinese manufacturing indexes showed a slower-than-estimated pace of expansion, a signal the nation’s economic recovery may be losing steam. The official Purchasing Managers’ Index was 50.4 in January, a report from the National Bureau of Statistics and China Federation of Logistics and Purchasing showed today in Beijing.

Bonds – Volumes were still low in the secondary market yesterday. Yields traded a very tight range in the markets and we can expect it to play out the same way in today’s session.

Bills – Demand in the secondary markets remained weak, OMO offering yesterday of N200billion in133 & 140 days. The CBN failed to sell anything at the auction due to low subscription. They are likely to return with another offering today.

Money Market – OBB and unsecured O/N rates stable at 10.15% and 10.25% yesterday. Market is being kept liquid by OMO maturities with N231 billion coming into the market yesterday.

Indicative Currency Exchange Rates
Bid Offer

EURUSD 1.3074 1.3084
GBPUSD 1.5170 1.5180
USDJPY 92.57 92.97
USDCHF 0.9359 0.9379
GBPEUR 1.1600 1.1610
USDZAR 9.0319 9.1319
USDNGN 158.00 158.75
JPYNGN 1.7068 1.7568
CHFNGN 168.82 172.82
EURNGN 206.57 210.57
GBPNGN 239.69 243.69
ZARNGN 17.49 19.49

West Texas Intermediate settled at the lowest level this year as the U.S. economy grew less than economists forecast and the euro weakened against the dollar. WTI for April delivery dropped 71 cents, or 0.8 percent, to $92.05 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 31. Trading was 16 percent below the 100- day average for the time of day at 5:48 p.m. yesterday.

Interest rates

O/N 10.4167 USD 1 month 0.2037
7 Day 10.8750 USD 2 month 0.2430
30 Day 11.7917 USD 3 month 0.2871
60 Day 12.2917 USD 4 month 0.3406
90 Day 12.7083 USD 6 month 0.4569
USD 12 month 0.7515
Y/Y Consumer Inflation January 2013 : 9%
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

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158.50/60 157.80/90 158.50/60 157.75/85

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