Financial market update

Financial-market21 June 2013, Sweetcrude, Lagos – Local and international financial market products and services update
NIGERIA: The Nigeria Sovereign Investment Authority (NSIA) has signed a memorandum of understanding (MoU) with the General Electric (GE) to develop and finance projects in the healthcare, aviation, transportation and power sectors in Nigeria.

Under the MoU, the GE and NSIA would seek opportunities to collaborate such that the NSIA’s role as a financial investor and GE’s role as an original equipment manufacturer would complement each other to achieve the strategic objectives of the agreement through partnership with relevant, credible, public and private sector entities. “This marks an important milestone for the NSIA in its efforts to enhance the development of infrastructure in Nigeria and encourage foreign investment. We look forward to developing a constructive relationship with GE.

EUROPE: European stocks advanced for the first time in four days, while U.S. equity futures and metals rallied. Asian shares outside Japan declined as Chinese money- market rates tumbled from records. The Stoxx Europe 600 Index rose 0.4 percent to 284.85 as of 8:15 a.m. in London. “Markets have come off quite a bit because of the U.S. Fed statements and a worry about liquidity, the Chinese economy is also a concern,” analyst said.

CHINA: In China, the one-day repurchase rate dropped 442 basis points, or 4.2 percentage points, to 8.43 percent, according to a daily fixing compiled by the National Interbank Funding Center. That is the biggest drop since October 2007. “The general backdrop to world markets is OK because the U.S. economy is improving but the big caveat is China,” Mark Matthews, a Singapore-based analyst said. “China is the one thing that could upset markets.”

BONDS: Volatile session as expected post FOMC, yields opened the day up from closing levels and bounced around for most of the day, very thin liquidity initially as yields spiked 90-100bps but eventually closing 70bps up from the previous day’s levels.

BILLS: Bearish markets today on the back in reaction to sentiment that the FOMC statement would lead to increased left hand side flow to mirror sentiment in the US markets which were sold off. Rates up about 70bps across the maturities in reaction to the portfolio outflows being seen in the bill market

MONEY MARKET: OBB and unsecured O/N rates eased to 13.00% and 13.25% respectively as liquidity levels received a boost through a T-bill maturity of N163billion.The FAAC payment has approved.”

COMMODITIES: West Texas Intermediate crude rebounded after the biggest drop in seven months yesterday. Prices are headed for the first weekly decline since May. Brent for August settlement was 48 cents higher at $102.63 a barrel on the London-based ICE Futures Europe exchange.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD        1.3221        1.3231
GBPUSD        1.5485        1.5495
USDJPY         98.00          98.40
USDCHF        0.9280      0.9300
GBPEUR        1.1710        1.1720
USDZAR        10.2200    10.3200
USDNGN       159.20       159.70
JPYNGN        1.6245       1.6745
CHFNGN      171.55         175.55
EURNGN      210.48       214.48
GBPNGN      246.52        250.52
ZARNGN      15.58           17.58

Interest rates
NIBOR (%)                         LIBOR (%)

O/N              14.0000            USD 1 month        0.1930
7 Day            14.2917             USD 2 month        0.2321
30 Day         14.5833             USD 3 month        0.2725
60 Day         14.8083            USD 4 month        0.3096
90 Day         15.0670            USD 6 month        0.4132
USD 12 month      0.6804
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.

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