Financial market update

22 March 2012, Sweetcrude, Lagos – Local and international financial market update.

NIGERIA:  Nigerian President Goodluck Jonathan approved the distribution of $2 billion from oil- revenue savings to be shared by the country’s 36 states and federal government. The funds, which will be distributed within the next two weeks, will be used to “facilitate various development projects being executed by the different tiers of government across the country,” Akwa Ibom state Governor Godwill Akpabio said yesterday in an e-mail from the capital, Abuja. Nigeria’s 36 states shared $1 billion last month from the oil savings to help them complete projects that have already been started.

EUROPE: European stock-index futures declined, indicating the Stoxx Europe 600 Index may fall for a second day, as Cypriot lawmakers begin a debate to unlock bailout funds and prevent a financial collapse. Futures on the Euro Stoxx 50 Index, a benchmark for the euro region, fell 0.5 percent to 2,605 at 7:05 a.m. in London.

INDIA: India’s rupee headed for its first weekly loss since the five days ended March 1 on concern political instability and limited room to lower borrowing costs will derail efforts to revive the economy. The rupee declined 0.5 percent this week to 54.3050 per dollar as of 9:53 a.m. in Mumbai, according to data compiled by Bloomberg.

CHINA: China’s growth is likely to accelerate this year and next as the world’s second-biggest economy weathers a fragile global recovery, according to the Organization for Economic Cooperation and Development. “Recent OECD simulations suggest that China could maintain high, though gradually easing, growth during the current decade,” the Paris-based organization said in a report released in Beijing today. Expansion may reach 8.5 percent this year and 8.9 percent in 2014, the OECD said.

Bonds – Stable session on Thursday, yields up an average 5bps across the curve. Volumes low as the market slows down after the last two weeks of volatility. Market likely to trade a range between 11.00% and 11.50% short term.

Bills – CBN came out to offer N250billion to the market in OMO yesterday but failed to sell any bills to the market without citing a reason. In reaction to the offer announcement market sold off early trading but the demand came back towards the close as news of the fact no sales were made at OMO fed into markets.

Money Market – OBB and unsecured O/N rates trading down to 10.15% both yesterday. Market still liquid from the FAAC inflow.

Indicative Currency Exchange Rates
Bid          Offer

EURUSD        1.2890       1.2900
GBPUSD         1.5178        1.5188
USDJPY          94.67         95.07
USDCHF         0.9464      0.9484
GBPEUR         1.1769        1.1779
USDZAR         9.3262       9.4262
USDNGN         158.35      159.10
JPYNGN          1.6727       1.7227
CHFNGN         167.32       171.32
EURNGN         204.11       208.11
GBPNGN          240.34      244.34
ZARNGN           16.98        18.98

Brent oil’s premium to West Texas Intermediate crude fell to an eight-month low. OPEC exports will decrease through early April as maintenance at refineries in Asia peaks, according to Oil Movements, a tanker tracker. Brent for May settlement was at $107.51 a barrel, up 4 cents, on the London-based ICE Futures Europe exchange at 1:34 p.m. Singapore time.

Interest rates
NIBOR (%)                          LIBOR (%)

O/N              10.2500             USD 1 month            0.2042
7 Day            10.5000            USD 2 month            0.2430
30 Day          10.7917             USD 3 month            0.2841
60 Day          11.0417              USD 4 month           0.3331
90 Day          11.3750              USD 6 month           0.4474
USD 12 month          0.7355
Y/Y Consumer Inflation February 2013 :             9.5%
FX Reserves: 15 March 2013 (USD bn)                48.315
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   158.98/08       158.60/70     158.80/90     158.73/83

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