Financial market update

Financial-markets319 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The European Development Fund (EDF) has granted $78 million (N12 billion) to develop water and sanitation projects as well as to strengthen governance in six states of Nigeria. The head of the World Bank task team in charge of state and local government projects, Ikechukwu Nweje, made this known in Awka on Wednesday at a meeting of the bank and the European Union (EU). The benefitting states are Anambra, Cross River, Kano, Jigawa, Osun and Yobe. Mr. Nweje explained that the implementation of the programme in the states was a collaboration between the two foreign donors. He said that the meeting was to assess the preparedness of the state and local governments for the implementation of the reform in July.

EUROPE: Europeans stocks advanced, paring their biggest weekly selloff since November, as commodity producers and luxury-goods companies rose. The Stoxx Europe 600 Index added 0.4 percent to 284.87 at 8:07 a.m. in London.

INDIA: Indian economy is likely to grow at 6.4 per cent rate in 2013, outpacing the 6 per cent expansion in developing Asia-Pacific economies in the same period, a United Nations report yesterday said. Unveiling the report here, Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan said: “India’s economic growth in 2013-14 will be better than 2012-13, but will be lower than the pre-crisis level. We need to organise ourselves to go back to pre-crisis level of growth rate.”

CHINA: China’s stocks rose the most in a month after companies from Qingdao Haier Co. to Northeast Securities Co. reported higher profit and a government economist forecast growth will rebound this year. The Shanghai Composite Index climbed 2.1 percent to 2,244.64 at the close, capping its biggest gain since March 20.

Bonds – On the back of a surprise spike at the auction on Wednesday the market traded bearish on Thursday as some panic selling set into market. Also some players who bid the auction only for commission sold off yesterday. Market will likely open volatile today and begin to retrace once it settles. We will possibly also see the return of offshore interest should their fear of falling oil prices abate and as levels begin to look interesting again.

Bills – With the CBN coming out to offer OMO bills worth N250billion and selling N189.731 across 147, 182 and 210 day bills between 11.95% and 12.1998%. The secondary market sold off yesterday in response to the offering with yields up around 45bps across board. The OMO bills yielding higher than the primary bills most players look to switch between the two.

Money Market – OBB and unsecured O/N rates averaging 10.25%.Market received a boost in liquidity through OMO maturities of about N217billion yesterday.

Indicative Currency Exchange Rates
Bid          Offer

EURUSD         1.3077        1.3087
GBPUSD         1.5354         1.5364
USDJPY          99.27           99.67
USDCHF         0.9310        0.9330
GBPEUR         1.1739         1.1749
USDZAR         9.1432         9.2432
USDNGN        158.15         158.90
JPYNGN         1.5931         1.6431
CHFNGN        169.87        173.87
EURNGN        206.81        210.81
GBPNGN         242.82       246.82
ZARNGN         17.30           19.30

West Texas Intermediate crude rose for a second day,
extending a rebound from a technical support level. WTI for
May delivery increased as much as 81 cents to $88.54 a
barrel in electronic trading on the New York Mercantile
Exchange and was at $88.48 at 2:52 p.m. Singapore time.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              10.3333        USD 1 month        0.1992
7 Day            10.7083        USD 2 month       0.2398
30 Day         10.9583        USD 3 month       0.2761
60 Day         11.2500         USD 4 month       0.3221
90 Day         11.5417          USD 6 month       0.4329
USD 12 month     0.7150
Y/Y Consumer Inflation March 2013 :        8.6%
FX Reserves: 17 April 2013 (USD bn)         48.768
MPR                                                                   12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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