Financial market update

Financial markets29 April 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria has recorded a significant improvement in its import trade figures as it saved N4.2tn in 2012 owing to a decrease in the importation of manufactured goods. The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, disclosed this during the opening ceremony of the ministerial session of the National Council on Industry, Trade and Investment.

USA: The USD fell for a second against the euro before date that economist said will show US personal spending stagnated boosting bets the Federal Reserve will renew its commitment to its bond-buying program this week.

EUROPE: Europe may accelerate a shift away from its Austerity first agenda this week as the new Italian government changes course and a German-Spanish investment pact underscores a renewed focus on combating record unemployment.

INDIA: The RBI faces pressure to cut lender’s reserve requirements as banks struggle to woo deposits and resists passing on interest rate reductions. Governor Duvvuri is expected to lower the repurchase rate for a 3rd time this year to 7.25% from 7.5% on May 3rd according to 22 of the 26 analysts surveyed by Bloomberg.

CHINA: China’s security regulator plans to raise the minimum, proportions equity funds should have in shares a move that may drive investments into the worst performing major Asian Stock Market in the past year. Chinese stock markets are shut for public holidays will reopen on May 2. The benchmark Shanghai Composite Index has tumbled 11% from its 2013 high on Feb 6 amid signs that the economy’s recovery is stalling.

Bonds – Sell-off continues across the bond curve as yields hit 12.00 percent mark on 2017’s and 2022’s, highest so far this year, we expect renewed demand at this level in the new week as market monitors the CBN liquidity mop-up exercise.

Bills – Special OMO auction announcement at a fixed rate of 12.35% discount on Friday morning eased tension in the market, yields which had hinged up 80 – 120bps this week slowed down due to indications from the CBN of a slowdown in rate movement. Market expected to remain volatile in the coming weeks.

Money Market – Lending rates close the week at 10.25% and 10.50% on O/N and OBB respectively.

Indicative Currency Exchange Rates
Bid            Offer

EUR/USD         1.3067        1.3077
GBP/USD          1.5528        1.5538
USD/JPY           97.80          98.20
USD/CHF          0.9408       0.9428
GBP/EUR          1.1883         1.1893
USD/ZAR         9.0623         9.1623
USD/NGN        159.10          159.85
JPY/NGN          1.6268        1.6768
CHF/NGN        169.11          173.11
EUR/NGN       207.90         211.90
GBP/NGN       247.05         251.05
ZAR/NGN       17.56            18.31

WTI fell for a second day after report shows economic slowdown in China. WTI fell $0.41 to $92.51/bbl while Brent fell as much as $0.45 to $102.71/bbl, with the WTI-Brent benchmark falling to $10.11.

Interest rates
NIBOR (%)                  LIBOR (%)

O/N              10.4167     USD 1 month          0.1982
7 Day            10.7917     USD 2 month          0.2398
30 Day         11.0417     USD 3 month          0.2756
60 Day         11.2917     USD 6 month          0.4304
90 Day         11.5833     USD 12 month        0.7105
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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