Financial market update

04 March 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: India High Commissioner to Nigeria, Mr. Mahesh Sachev, has said that Nigeria imported over $138 million worth of textiles products from India in 2012. Sachev disclosed this during the opening of Indian Textile Exhibition (INTEXPO) organised by Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) in collaboration with High Commission of India in Lagos. He said Nigeria’s share in the import of man-made- fibre textiles in the overall import of textiles was nearly 52 per cent. The commissioner reiterated his country’s readiness towards cementing the Memorandum of Understanding on textile trading that was signed with Nigeria two months ago.

EUROPE: European stock futures declined, indicating the Stoxx Europe 600 Index will fall for a second day, as China tightened mortgage rules to cool its property market and the political impasse in Italy continued. Futures on the Euro Stoxx 50 Index expiring this month fell 0.8 percent to 2,596 at 7:09 a.m. in London.

INDIA: India’s rupee fell to the lowest level in almost two months on concern U.S. spending reductions will hurt global growth, damping demand for riskier assets. The currency declined 0.3 percent to 55.055 per dollar as of 10:27 a.m. in Mumbai, falling for a third day, according to data compiled by Bloomberg.

CHINA: China’s stocks plunged, dragging down the CSI 300 Index by the most in two years, after the government ordered more measures to cool property prices and growth in the nation’s services industries slowed. The CSI 300, representing the nation’s biggest companies in the Shanghai and Shenzhen stock exchanges, fell 4.6 percent to 2,545.72 at the close, the most since November 2010, while the Shanghai Composite Index slid 3.7 percent to 2,273.40, the most since August 2011.

Bonds – Bonds traded lightly last week and yields were largely unchanged.

Bills – OMO issuance for last week totalled NGN 348.31bn as the CBN came in to pre-empt the impact of a bill maturity. Bills sold off this week in light of the continued OMO issuance, closing up an average of 30bps.

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

Indicative Currency Exchange Rates
Bid           Offer

EURUSD        1.3003       1.3013
GBPUSD         1.5031       1.5041
USDJPY          93.43         93.83
USDCHF         0.9433      0.9453
GBPEUR         1.1557        1.1567
USDZAR         9.1015       9.2015
USDNGN        157.50       158.25
JPYNGN         1.6858       1.7358
CHFNGN        166.97       170.97
EURNGN        204.80      208.80
GBPNGN         236.74      240.74
ZARNGN         17.30         19.30

Brent for April settlement slid 1 cent to $110.39 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was more than double the 100-day average.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              10.2500        USD 1 month           0.2037
7 Day            10.7083        USD 2 month           0.2415
30 Day         10.8750        USD 3 month           0.2841
60 Day         11.3333         USD 4 month           0.3381
90 Day         11.6250         USD 6 month          0.4564
USD 12 month         0.7495
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.

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