Financial market update

Gold bar on a scale02 May 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Solid mineral products and crude oil were the dominant commodities that grew the total value of Nigeria’s export trade in 2012 by 15.5% compared to the value in 2011. According to the National Bureau of Statistics the 2012 export trade volume grew from N19.4 trillion in 2011 to N22.45 trillion in 2012, showing a growth of N3.01 trillion in value and 15.5% increase over the value of 2011.

EUROPE: The euro rose to a two-month high against a broadly weaker dollar on Wednesday as expectations the U.S. Federal Reserve will stick to its aggressive stimulus programme continued to hurt the U.S. currency. The euro was up 0.3 percent at $1.3213, its highest since Feb. 25.

INDIA: India’s central bank is widely expected to cut its main policy rate on Friday for the third time since January, to breathe life into a comatose economy and encouraged by a sharper-than-expected fall in wholesale prices. The Reserve Bank of India is likely to lower the repo rate by 25 basis points to 7.25 percent, a Reuter’s poll showed.

CHINA: China shares returned from a long holiday on a weaker note on Thursday, as soft manufacturing data and weak quarterly earnings put growth-sensitive counters on the defensive. The CSI300 of the leading Shanghai and Shenzen A-share listings closed a choppy session up 0.1 percent. The Shanghai Composite index shed 0.2 percent to 2,174.1, closing just below its 200-day moving average for the first time since Christmas Eve.

Bonds – Trading liquidity returned to the 5yr point of the yield curve on Tuesday recording a 66bps upward move on the 10.70% fgn may2018. Trade volume up on the day with renewed demand on the Jan 2022’s down 20bps to close at 11.78%, this move is expected into the new week though not sustainable.

Bills – CBN finally issued ngn132.80 bio on the 226dy paper after two instances of rate deadlock at the OMO auction, takers hit the market midday on Tuesday lifting securities across board in need of instruments for hedging. We expect another OMO auction when market reopens on Thursday to mop-up liquidity inflow of ngn197.14 bio.

Money Market – Lending rates up 50bps in Tuesday’s session to 10.75% and 11.00% on OBB and ON. OMO auction funding and the holiday Wednesday accounted for this even though market remains liquid up about ngn126 bio at the close of trading.

Indicative Currency Exchange Rates
Bid         Offer

EURUSD    1.3160      1.3170
GBPUSD     1.5555      1.5565
USDJPY      97.23       97.63
USDCHF     0.9288    0.9308
GBPEUR     1.1820      1.1830
USDZAR     9.0477      9.1477
USDNGN    157.40      158.15
JPYNGN     1.6188      1.6688
CHFNGN    169.47      173.47
EURNGN    207.14      211.14
GBPNGN     244.84     248.84
ZARNGN     17.40        19.40

Brent Crude steadied near $100 a barrel on Thursday, holding close to two-week lows hit in the previous session, as growing worries about the U.S. and Chinese economies muddied the outlook for oil demand from the top two consumers.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N               10.9167        USD 1 month        0.1982
7 Day             11.3333         USD 2 month       0.2379
30 Day          11.6250         USD 3 month       0.2731
60 Day          11.9583         USD 4 month       0.3176
90 Day          12.1667          USD 6 month      0.4254
USD 12 month    0.7040
Y/Y Consumer Inflation March 2013 :        8.6%
FX Reserves: 29 April 2013 (USD bn)         48.853
MPR                                                                     12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi             Low         Close         Prev.Close
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