Financial market products & services update

*Financial markets.

*Financial markets.

27 November 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The Federal Government plans to set up a $25bn (N4.98tn) fund dedicated to infrastructure investments, the Minister of Finance, Mrs. Kemi Adeosun, has said. She said this on Thursday in Lagos during the inauguration of the Capital Market Master Plan Implementation Council, the National Investor Protection Fund and launch of the Corporate Governance Scorecard by the Securities and Exchange Commission. According to Adeosun, who was represented at the event by the Permanent Secretary, Ministry of Finance, Dr. Mahmoud Isa-Dutse, the decision to set up the fund for infrastructure is in recognition of the critical role of the capital market to the kind of economy the present administration intends to develop for Nigeria.

FIXED INCOME: Bond market opened bearish, led by profit takers. The selling later cooled off and there were renewed interest in some of the maturities. All activities still from local players with offshore clients very muted. T-bills on the other hand had a different feel; market was bullish all day as street continued to deploy the available liquidity into short dated assets. T-bill yields dropped by 24bps while Bond yields went up by 66bps. Average yields are now 2.49% for T-bills and 9.85% for Bonds. O/N unchanged at 1% and money market liquidity over 450bn following OMO maturity.
FX: The CB maintained the Special auction rate at 197.00 yesterday.
CHINA: Activity in China’s manufacturing sector shrank for a fourth straight month in November, a poll showed, underlining persistent sluggishness in the world’s second-largest economy. The official manufacturing Purchasing Managers’ Index (PMI) likely stayed at 49.8 in November, the same pace as in the previous two months, according to reports.

U.K.: Growth in UK house prices slowed slightly in November, according to reports. Prices were 3.7% higher than a year earlier, down from 3.9% in October. House prices rose by 0.1% in November from the previous month, and the average property now costs £196,305. The reports stated that the annual rate of house price growth for the past few months had been broadly in line with earnings growth over the longer term.

COMMODITIES: Oil pared its first weekly gain in a month as Libya sought to increase output and Russia ruled out military retaliation against Turkey for downing its jet near the Syrian border. West Texas Intermediate for January delivery dropped as much as 75 cents to $42.29 a barrel on the New York Mercantile Exchange and was at $42.40.

Macro Economic Indicators
Inflation rate (Y-o-Y) for October. 2015                9.30%
Monetary Policy Rate current                                13.00%
FX Reserves (Bn $) as at November 23, 2015    30.16

Money Market Highlights

O/N                             1.0433
30 Day                        9.2174
90 Day                      10.9618
180 Day                    12.7170
USD 1 Month           0.2315
USD 2 Months        0.3180
USD 3 Months        0.4067
USD 6 Months        0.6486
USD 12 Months      0.9733

Benchmark Yields
Tenor       Maturity       Yield (%)

91d             18-Feb-16         1.37
182d          26-May-16        3.75
364d         20-Oct-16          3.86
2y              27-Apr-17          7.73
3y              29-Jun-19        10.33
5y              13-Feb-20        10.43

Indicative Currency Exchange Rates
Bid          Offer

USDNGN        196.70         197.40
EURUSD         1.0514         1.0716
GBPUSD         1.4988         1.5190
USDJPY          122.36         122.39
USDCHF        1.01855        1.0287
GBPEUR        1.4113           1.4317
USDZAR       14.2516         14.4550

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