Financial market update

12 March 2013, Sweetcrude, Lagos – Local and international financial market update.

NIGERIA: At the close of year 2012, Nigeria had raked in about $900 million from the export of cocoa and cocoa products, Minister of Trade and Investment, Olusegun Aganga, has said. He stated this on Friday in Abuja during the National Sensitization Workshop on Sanitary PhytoSanitary Stardards Capacity Building in Africa. The minister, who was represented by the Acting Permanent Secretary of the ministry, who is also the Director of Industrial Development, Mr. Olakunle Sogboola, said cocoa is the second largest foreign exchange earner after crude oil for Nigeria and generates over 2 million jobs directly and indirectly along its value chain.

EUROPE:  Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing. Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid instalment due this month. More than a week of talks on that has so far failed to clinch an agreement.

INDIA: India’s industrial output rose more than economists estimated in January following policy changes by the government to bolster an economy expanding at the weakest pace in a decade. Production at factories, utilities and mines climbed 2.4 percent from a year earlier after a revised 0.5 percent drop in December, the Central Statistical Office said in a statement in New Delhi today.

CHINA: China’s stocks fell for a fourth day, the longest stretch of losses in three months, on speculation regulators may resume initial public offerings. The Shanghai Composite Index slid 1 percent to 2,286.61 at the close, the biggest loss since March 4.

Bonds – Bearish session to close last week. Another 18bps upward move on the bond curve Friday. Monthly bond auction this week and available on offer is the 2017’s and 2022’s ngn35 bio each, yields expected to trade at this level and slightly higher on the 2018’s and 2019’s.

Bills – Yields up 35bps in Friday’s session due to the continued sell-off from Thursday. Another OMO auction announcement at the start of Friday’s session where ngn103.42 bio was issued and a total of ngn224.59 bio of OMO bills issued this week.

Money Market – OBB and ON rate maintained at 10.10% and 10.15%. Cash Market remains liquid though ngn103.42 bio was issued in OMO bills on Friday.

Indicative Currency Exchange Rates
Bid             Offer
EURUSD        1.3001           1.3011
GBPUSD        1.4893           1.4903
USDJPY          96.37             96.77
USDCHF       0.9494           0.9514
GBPEUR        1.1454            1.1464
USDZAR        9.1512            9.2512
USDNGN       157.75            158.50
JPYNGN        1.6369            1.6869
CHFNGN       166.16            170.16
EURNGN       205.09           209.09
GBPNGN       234.94            238.94
ZARNGN        17.24               19.24

Brent for April settlement was down 47 cents, or 0.4 percent, at $109.75 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 4 percent below the 100-day average.

Interest rates
NIBOR (%)                          LIBOR (%)

O/N              10.5833              USD 1 month             0.2022
7 Day            10.9583              USD 2 month            0.2405
30 Day         11.4583               USD 3 month            0.2801
60 Day         11.8250               USD 4 month            0.3326
90 Day         12.0833              USD 6 month            0.4469
USD 12 month          0.7330
Y/Y Consumer Inflation January 2013 :                9.00%
FX Reserves: 4 March 2013 (USD bn)                   47.563
MPR                                                                               12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria

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