Financial market products & services update

*Financial markets

*Financial markets

04 November 2015, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: Nigerian-British Chamber of Commerce (NBCC) and the Nigerian Export Promotion Council (NEPC) have concluded plans to lead a delegate of 40 business executives on a five-day Trade Mission to the United Kingdom from 2nd to 6th November, 2015.
This year’s mission is aimed at attracting foreign investment to Nigeria with a focus on multi sectors, particularly the non-oil products and services.
Announcing the investment target in Lagos recently, the President NBCC, Prince Dapo Adelegan, stated that the Chamber was committed to increasing trade relations between Nigeria and Britain. He said the Chamber’s partnership with NEPC was to enhance its drive to attract UK investors to different States in Nigeria during the UK Trade Mission. He pointed out that the Trade Mission will provide opportunities for state governors to showcase the investment potential in their various states.

FIXED INCOME: Liquidity status in the system continues to drive a well bid market in T-bills.
The news of DMO borrowing less at the Nov 11 bond auction seems to have countered any effects funding for FX special auction could have brought yesterday. At the bond auction, DMO will be now be offering N50bn vs. N80bn at last auction. Whispers of this info had filtered in towards close of trading causing a disorderly move in bonds (March 2024s crossed the ‘13%’ handle).

FX: The CBN quoted the special auction rate at 196.98 yesterday. Gross FX reserves on a 30 day moving average now at $30.250bn (1st Nov 2015) from $30.192 as at 30 Oct 2015.

MONEY MARKETS: Money market remains very liquid with O/N rates closing unchanged at 1%. Money market long NGN 904.10 bn.

COMMODITIES: Oil traded below $48 a barrel before U.S. government data forecast to show crude stockpiles increased in the world’s biggest consumer.
Futures fell as much as 0.6% in New York after advancing 3.8% Tuesday. Inventories probably expanded for a sixth week, keeping supplies more than 100 million barrels higher than the five-year seasonal average, a Bloomberg survey shows before an Energy Information Administration report Wednesday. China has a bottom-line goal of 6.5% annual economic growth, according to its new development blueprint released Tuesday.

CHINA: China’s central bank unintentionally sparked a surge in the nation’s stock market by publishing five-month-old comments from Governor Zhou Xiaochuan that said a link between exchanges in Shenzhen and Hong Kong would start in 2015.
Zhou’s comments appeared in a lengthy article dated Tuesday that focused on the need for Communist Party discipline. It was published on the PBOC’s website without any indication that the statements were old. The central bank later said via text message that the comments were taken from a speech on May 27, while Hong Kong’s bourse said the program is still subject to regulatory approval. The clarifications came after a 3.3% surge in the Shenzhen Composite Index and a 3.1% gain in Hong Kong’s Hang Seng Index.

E.U. European Central Bank President Mario Draghi said officials will look again at their policy stance in December to assess whether enough support is being provided to the economy.
Renewed declines in energy prices and slowing global trade are making it harder for the Frankfurt-based ECB to meet its inflation target of just under 2%, with price gains slipping into negative territory in September. The ECB has yet to detail how it could adjust its existing 1.1 trillion-euro ($1.2 trillion) quantitative-easing program or add other stimulus.

Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014                   9.40%
Monetary Policy Rate current                          13.00%
FX Reserve (Bn $) as at January 09 2015     30.250

Money Market Highlights
O/N                                 01.0633
30 Days                          13.7093                                                                                                      90 Days                          15.6407
180 Days                         17.3855

USD 1 Month                  0.1900
USD 2 Months                0.2537
USD 3 Months                0.3341
USD 6 Months                0.5561                                                                                                       USD 12 Months              0.8746

Benchmark Yields
Tenor     Maturity     Yield (%)
91d           04-Feb-16          05.18
182d         05-Apr-16         08.54
364d         20-Oct-16         10.09
2yr            31-Aug-17         12.08
3yr            30-May-18        12.04
5yr            13-Feb-20         12.31

Indicative Currency Exchange Rates
                         Bid           Offer
USDNG         197.40         199.48
EURUSD       1.0829         1.1032
GBPUSD       1.5330          1.5534
USDJPY        121.14           121.63
USDCHF       0.98745      0.9977
GBPEUR       1.4012         1.4220
USDZAR      13.7310        13.9369
JPYNGN      161.8497      161.9503
CHFNGN       204.99       206.68
EURNGN       217.24        219.60
GBPNGN        309.40      310.79
ZARNGN          14.69         16.61

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