Financial market update

Gold bar on a scale10 May 2013, Sweetcrude, Lagos, NIGERIA – Local and international financial market update.
The Federal Government is currently working on the establishment of a new development bank for the country. This is apart from the efforts being made by the government to recapitalize the Bank of Industry and the Bank of Agriculture. Vice-President Namadi Sambo disclosed this on Tuesday while receiving a ministerial trade delegation from Sweden at the Presidential

USA: Company financial reports are showing little improvement in demand. The FEDs third round stimulus could boost prospects for faster sales gains in the second half of this year. Modest economic growth weighing on results, revenue for companies in the S&P500 Index has missed the aggregate analysts’ estimate by about 0.7%.

The annual inflation rate in the euro area dipped to 1.2 percent in April from 1.7 percent a month earlier. That’s the lowest since February 2010. The ECB predicts prices to rise 1.6 percent this year and 1.3 percent in 2014.

INDIA: India’s industrial output in March expanded at the fasterst pace in five months after the central bank eased interest rates to review economic growth. The RBI has cut interest rates three times in 2013 to help revive an economy that expanded at the weakest pace in a decade last year.

CHINA: China can’t be blindly optimistic about the outlook for inflation at a time when uncertainties remain in the areas such as property and farm produce prices, the central bank said. China wll continue to pursue a prudent monetary policy to keep prices stable, the PBOC said in its first quarter monetary policy implementation report.

Bonds – Bullish session on Thursday in the markets, yields coming off across the curve with the Jun 29s the early focus of the day as it dipped 25bps as the biggest mover in the session.

Bills – With an injection of liquidity from maturing bills, and the absence of any OMO offering yesterday coupled with the dip at the primary auction, market opened bullish and remained so throughout the session. Offshore interest continues to feed into the markets. Expectation is that we might see some OMO activity tomorrow or to start next week.

Money Market – OBB and unsecured O/N rates easing to 10.15% and 10.25% respectively on the back of N230billion OMO maturities.

Indicative Currency Exchange Rates
Bid         Offer

EURUSD    1.3020      1.3030
GBPUSD     1.5431      1.5441
USDJPY      101.29      101.69
USDCHF    0.9543      0.9563
GBPEUR    1.1851        1.1861
USDZAR    9.0566       9.1566
USDNGN   157.40       158.15
JPYNGN    1.5540       1.6040
CHFNGN   164.94       168.94
EURNGN   204.93      208.93
GBPNGN   242.88      246.88
ZARNGN   17.38         18.13

Brent rose $0.13 to $104.47/bbl, with front month WTI-Brent benchmark closed at $7.72 , the narrowest gap since Jan 2011.

Interest rates
NIBOR (%)                    LIBOR (%)

O/N              10.2917        USD 1 month      0.1992
7 Day            10.6667       USD 2 month      0.2374
30 Day         10.9583       USD 3 month      0.2751
60 Day         11.1917         USD 6 month      0.4274
90 Day         11.5000       USD 12 month    0.7021
Y/Y Consumer Inflation March 2013 :      8.6%
FX Reserves: 7 May 2013 (USD bn)          48.651
MPR                                                                 12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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