Financial market update

Financial-market18 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s trade balance improved from $10.93 billion in the third quarter (Q3) of 2012 to $11.42 billion in the fourth quarter (Q4), the Central Bank of Nigeria (CBN) has said. The CBN disclosed this in a report titled: “Developments in the External Sector of the Nigerian Economy for Fourth Quarter, 2012,” posted on its website at the weekend. It showed that aggregate exports rose by 3.5 per cent from $23.39 billion as at Q4 2011, to $24.21 billion in Q4 2012. The report also revealed that the share of total trade, trade balance, exports and total foreign exchange flows as percentage of Gross Domestic Product (GDP) recorded improved performance in Q4 2012.

EUROPE: European stocks were little changed, after the Stoxx Europe 600 Index posted three days of losses, as investors awaited a U.K. unemployment data. The Stoxx 600 fell less than 0.1 percent to 288.12 at 8:25 a.m. in London. The gauge fell yesterday as German investor confidence declined more than forecast and the International Monetary Fund cut its global growth outlook.

INDIA: India’s benchmark stock index rose to a two-week high on speculation falling commodity prices will cool inflation and narrow a record current-account gap, giving the central bank room to reduce borrowing costs. The S&P BSE Sensex rose 0.5 percent to 18,846.1 at 12:46 p.m. in Mumbai, headed for the highest level since April 2.

CHINA: Moody’s Investors Service lowered its outlook for China’s credit rating to stable from positive, saying the nation has made less progress than anticipated in reducing risks from local-government debt and credit expansion. “Structural reforms under the new leadership” may not be sufficient over the next 12 to 18 months to justify an upgrade, Moody’s said yesterday in a statement from Singapore as it affirmed China’s Aa3 rating, the fourth-highest level.

Bonds – Ahead of the auction yields up slightly across the 17s and 19s intraday on Monday, the 22s seemed to be pulling lower and this might be an indication of the demand we might see into the auction.

Bills – An active trading day on Monday with rates volatile intraday. Closing levels don’t tell the story as rates closed largely flat across most of the traded maturities.

Money Market – OBB and unsecured O/N rates opened the week at 11.50% and 11.75%. Market was fairly liquid opening about N94billion long on Monday. OMO maturity this week expected to come in and keep market liquid.

Indicative Currency Exchange Rates
Bid        Offer
EURUSD        1.3165      1.3175
GBPUSD         1.5323     1.5333
USDJPY          98.14       98.54
USDCHF         0.9233    0.9253
GBPEUR         1.1640      1.1650
USDZAR         9.1324      9.2324
USDNGN        157.60      158.35
JPYNGN          1.6059     1.6559
CHFNGN         170.69     174.69
EURNGN         207.48     211.48
GBPNGN         241.49      245.49
ZARNGN         17.26 19.26

West Texas Intermediate crude fluctuated near the lowest level in almost four months. An industry report showed U.S. stockpiles fell the most this year. WTI for May delivery was at $88.80 a barrel, down 8 cents, in electronic trading on
the New York Mercantile Exchange at 3:19 p.m. Singapore time.

Interest rates
NIBOR (%)                       LIBOR (%)

O/N              12.4167           USD 1 month         0.2002
7 Day            12.6667           USD 2 month        0.2403
30 Day         12.9583           USD 3 month        0.2771
60 Day         13.1667            USD 4 month        0.3231
90 Day         13.4167            USD 6 month       0.4364
USD 12 month      0.7175
Y/Y Consumer Inflation February 2013 :       9.5%
FX Reserves: 10 April 2013 (USD bn)            48.699
MPR                                                                       12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi           Low            Close
157.25/35   157.98/08   158.10/20

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