Financial market update

Financial markets06 May 2013, Sweetcrude, Houston – Local and international financial markets update.
NIGERIA: The U.S. Foreign Direct Investment flow into Nigeria has increased from $5.2 billion in 2000 to $8 billion in 2012. The Nigeria Ambassador to the U.S., Ade Adefuye made this known during a presentation on investment promotion strategies at the regional Seminar for Heads of Missions in the Americas held in New York. According to him, the country has also witnessed a diversification of investments from the oil and gas sector to other key non oil sectors. He identified the sectors as Power, Energy, Agriculture, Hospitality, Housing, Health Care, among others.

EUROPE: The euro-area economy will shrink more than previously estimated in 2013 as part of a two-year slump that has pushed up unemployment to a record, according to the European Commission. Gross domestic product in the 17-nation currency bloc will fall 0.4 percent this year, compared with a February prediction of 0.3 percent, the commission said in a report issued in Brussels on Friday.

INDIA: Indian stocks climbed, with the benchmark index extending a three-week rally, as foreign funds added to their holdings of local equities. The S&P BSE Sensex added 0.3 percent to 19,627.88 at 12:38 p.m. in Mumbai. The Sensex has rallied for three weeks, the longest run since December, as overseas investors stepped-up purchases of Indian equities amid optimism the Reserve Bank of India would cut interest rates at its May 3 review. While the RBI lowered borrowing costs that day, Governor Duvvuri Subbarao said in an interview to Bloomberg TV India the next day the possibility of further easing is “practically non-existent.”

CHINA: China’s stocks rose to a two-week high as commodity producers jumped on U.S. jobs data and China United Network Communications Ltd. led a rally for phone companies after its controlling shareholder increased its stake. The Shanghai Composite Index advanced 1.2 percent to 2,231.17 at the close, the highest level since April 22.

Bonds – Demand sustained in Friday’s session across the bond curve matched with improved trading liquidity and volumes.

Bills – Another round of OMO auction pushed yields 10 -15bps up in Friday’s session, ngn63.51 bio issued on same paper issued on Thursday, this hits a total of ngn346.19 bio issued last week.

Money Market – OBB and ON rate closed last week at 12.00% and 12.50%, ngn346.19 bio taken out of the cash market via OMO bills issuance last week. Another liquid and active week ahead with another ngn310 bio expected in from a maturing t-bill.

Indicative Currency Exchange Rates
                               Bid            Offer

EURUSD           1.3116       1.3126
GBPUSD           1.5563       1.5573
USDJPY            99.38         99.78
USDCHF           0.9367      0.9387
GBPEUR           1.1865       1.1875
USDZAR           8.9444      9.0444
USDNGN          157.10      157.85
JPYNGN          1.5808      1.6308
CHFNGN         167.72       171.72
EURNGN         206.05      210.05
GBPNGN          244.49       248.49
ZARNGN         17.56         19.56

West Texas Intermediate crude headed for the biggest three-day gain in nine months as air strikes in Syria renewed concern that unrest will spread in the Middle East and disrupt supply. WTI for June delivery gained as much as $1.56 to $97.17 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.23 at 3:12 p.m. Singapore time.

Interest rates
NIBOR (%)                       LIBOR (%)

O/N              13.0417        USD 1 month       0.1982
7 Day           13.1250        USD 2 month       0.2374
30 Day        13.4167        USD 3 month        0.2751
60 Day        13.6250        USD 4 month       0.3186
90 Day        13.8750        USD 6 month       0.4254
                                                USD 12 month     0.7021
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.

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