Financial market update

Financial markets12 June 2013, Sweetcrude, Lagos – Local and international financial markets products and services update.
NIGERIA: The Bankers’ Committee Tuesday said it was seeking ways of encouraging participation in the bond market so as to provide the country the opportunity to tap into available pool of funds for developmental purposes.

Rising from its 313th meeting, which was held in Abuja, the committee said it was discussing ways of removing impediments to the development of the bond market. Also, it said effort had reached remarkable level on how to encourage the development of affordable housing by banks. As a result of that, the committee expressed support for plans to establish a Mortgage Refinancing Company (MRC) in conjunction with the Federal Ministry of Finance

EUROPE: European stocks advanced as investors weighed the outlook for continuing central bank stimulus. Asian shares declined, while U.S. futures climbed. Greece failed to meet criteria regarding securities borrowing and lending facilities, short selling and transferability, according to a statement yesterday from MSCI, whose equity indexes are tracked by investors with about $7 trillion in assets.

INDIA: India’s industrial output rose less than economists estimated in April as domestic demand and export growth remained subdued. Asia’s third-largest economy expanded at the weakest pace in a decade in the year ended March, hurt by moderating investment, elevated inflation and an uneven global recovery.

CHINA: China’s consumer price index rose 2.1 per cent in May from a year earlier, down 0.3 percentage point from April, the National Bureau of Statistics (NBS) said on Sunday. The lower CPI growth gives room for an interest rate cut, economists said.

BONDS: – Another aggressive sold off in the run up to the bond auction as the panic selling was in full swing yesterday. Extremely volatility and fragmented markets. More liquidity enjoyed today’s session as the market tried to position ahead of tomorrow’s bond auction.

BILLS: Bearish markets all around as the bill market is beginning to see some significant left hand side flows through some profit taking and hedge positioning. No OMO auctions yesterday.

MONEY MARKET: – OBB and unsecured O/N went up 200bps to12.25% and 12.50% with the market opening up N67 billion today as liquidity thinned out.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD     1.3280        1.3290
GBPUSD      1.5667        1.5677
USDJPY       96.63          97.03
USDCHF      0.9266       0.9286
GBPEUR      1.1712         1.1722
USDZAR      10.0900     10.1900
USDNGN    159.10         159.85
JPYNGN     1.6465        1.6965
CHFNGN    171.70         175.70
EURNGN    211.28        215.28
GBPNGN     249.26      253.26
ZARNGN     15.77          17.77

Brent futures steadied near $103 a barrel as worries the US Federal Reserve may scale back its stimulus countered the optimism steaming from a huge in Oil stockpiles in the world’s top consumers.

Interest rates
NIBOR (%)                        LIBOR (%)
O/N              10.2500          USD 1 month           0.1928
7 Day            10.6667           USD 2 month          0.2301
30 Day         10.9167           USD 3 month           0.2744
60 Day         11.1667            USD 4 month          0.3181
90 Day         11.4167            USD 6 month          0.4127
USD 12 month        0.6862
Y/Y Consumer Inflation April 2013 :                9.1%
FX Reserves: 06 Junel2013 (USD bn)              48.423
MPR                                                                         12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi            Low            Close      Prev.Close
     159.65/75   159.20/30  159.45/55   158.50/60

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