Financial market update

Financial-market09 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The rebasing of Nigeria’s GDP, which is expected to increase the estimated size of Africa’s second largest economy by around 40 per cent, is likely to be delayed until next year, the Director General of the National Bureau of Statistics (NBS) Yemi Kale told Reuters on Monday. The recalculation will enable Nigeria to join the ranks of middle-income countries and put it much closer in size to South Africa, the continent’s most developed economy.

EUROPE: European shares were led up by miners on Tuesday, as investors hoped for more accommodative monetary policy from China after it reported benign inflation data and U.S. firm Alcoa posted solid earnings. The FTS Euro first 300 was up 5.51 points, or 0.5%, at 1,170.30 by 0706 GMT

INDIA: India’s industrial production probably shrank in February due to contraction in infrastructure industry output and flagging demand, after a surprisingly strong rise in January. A consensus forecast by a Reuters poll of 26 economists showed factory production likely fell by 0.7 per cent in February on a year earlier, following a 2.4 per cent surge in January.

CHINA: China shares posted their first gain in about a week in tepid Tuesday trade, led by strength in growth-sensitive sectors as tightening concerns eased after data showed March inflation was weaker than expected. The CSI300 of the leading Shanghai and Shenzhen A-share listings closed up 0.7 per cent, its first gain in five days. The Shanghai Composite Index had its first gain in 5 days, climbing 0.6 per cent to 2,225.8 to barely close above its 100-day moving average at about 2,223.9.

Bonds – Low volumes going through the markets on Monday with volatility intraday. Yields coming off for the most part across the curve an average 6bps.

Bills – Bearish markets yesterday following the OMO announcement, with liquidity levels dropping, some, profit taking on speculation that OMO rates will likely trend higher. CBN sold N102billion at 12.00% in 164day bills.

Money Market – OBB and unsecured O/N rates both at 10.25% and 10.50%. Market opened up N235billion on Monday of which about N96.5billion was mopped up through OMO, which is why rates went up only slightly.

CBN WDAS AUCTION- CBN offered and sold $300m. Marginal rate at 155.74 naira, with 21 bank participating.

Indicative Currency Exchange Rates
Bid             Offer

EURUSD           1.3013           1.3023
GBPUSD            1.5259           1.5269
USDJPY             98.93            99.33
USDCHF            0.9362         0.9382
GBPEUR            1.1725            1.1735
USDZAR            8.9926         9.0926
USDNGN           157.15           157.90
JPYNGN            1.5885          1.6385
CHFNGN           167.86          171.86
EURNGN           204.50         208.50
GBPNGN            239.80         243.80
ZARNGN            17.48            19.48

Brent crude futures rose above $105 per barrel on Tuesday after data showed China’s inflation in March was slower than expected, giving it room to keep monetary policy easy and supportive of oil demand in the world’s second-biggest consumer.

Interest rates
NIBOR (%)                         LIBOR (%)

O/N              10.6250            USD 1 month            0.2003
7 Day            10.9583            USD 2 month            0.2403
30 Day         11.2500             USD 3 month           0.2794
60 Day         11.6250             USD 4 month           0.3271
90 Day         11.8333             USD 6 month           0.4419
USD 12 month          0.7210
Y/Y Consumer Inflation February 2013 :            9.5%
FX Reserves: 28 March 2013 (USD bn)              48.573
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  157.70/80   157.45/55   157.60/70   157.70/80

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