Financial market products & services update

*Financial markets.

*Financial markets.

09 December 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: Unveiling what it said would be its short-term plan to upgrade Nigeria’s national infrastructure to immediately begin to add value in the lives of the country’s citizens, the federal government yesterday said it would reasonably focus on completing existing projects and contracts in the country’s roads, power and housing sectors. It also revealed plans to reintroduce highway tolling to raise additional funds to finance road infrastructure and ensure efficient road maintenance. The government, through its Minister of Power, Works and Housing, Mr. Babatunde Fashola, said in Abuja that it inherited a huge projects and contracts portfolio yet to be completed in the three sectors from the last government. Fashola therefore stated that it would make no sense starting up fresh projects now especially with government’s current lean revenue and indebtedness to contractors.

FX: The CB Special auction rate was 196.97 yesterday.

FIXED INCOME: Market stayed quiet yesterday, a lot of price action compared to actual trades. Market continued to squeeze yields on both Bonds and T-bills, t-bill dropped marginally by 4bps, while bonds dropped by a decent 20bps. Market still mostly dominated by locals, but a few offshore demands are been met too. Average bond yield now 9.82% and average t-bill yield now 4.00%. Liquidity still very decent with O/N at about 1%.

COMMODITIES: Oil halted its decline near the lowest price in more than six years before weekly U.S. crude inventory and production data. West Texas Intermediate for January delivery climbed as much as 88 cents to $38.39 a barrel on the New York Mercantile Exchange and was at $38.10 at 3:56 p.m. Hong Kong time.

EUROPE: Euro-area growth in the third quarter was bolstered by private consumption and government spending as exports suffered from a slowdown in global trade. Gross domestic product in the 19-nation bloc rose 0.3 percent in the three months through September after expanding 0.4 percent in the prior quarter, the European Union’s statistics office said on Tuesday in Luxembourg, confirming a Nov. 13 estimate. The data come less than a week after the European Central Bank cut one of its main interest rates to a record low and expanded its asset-purchase program to at least 1.5 trillion euros ($1.6 trillion) to shore up the region’s muted economic recovery and bring inflation closer toward 2 percent. While domestic spending is benefiting from lower oil prices, exports are damped by an economic slowdown in emerging markets.

CHINA: China’s consumer inflation picked up last month, boosted by price gains for food and services, signaling demand in the world’s second-largest economy is stabilizing after accelerated fiscal stimulus and a year of interest-rate cuts. The consumer-price index rose 1.5 percent in November from a year earlier, the National Bureau of Statistics said Wednesday, compared to the 1.4 percent median estimate in a Bloomberg survey and 1.3 percent in October. The producer-price index fell 5.9 percent, compared to a projected 6 percent drop, extending declines to a record 45 months.

Macro Economic Indicators
Inflation rate (Y-o-Y) for October. 2015              9.30%
Monetary Policy Rate current                                11.00%
FX Reserves (Bn $) as at December 7, 2015       29.597

Money Market Highlights
O/N                           0.9900
30 Day                      9.3684
90 Day                     11.2983
180 Day                   13.4191
USD 1 Month          0.2931
USD 2 Months        0.3900
USD 3 Months        0.4865
USD 6 Months        0.7211
USD 12 Months      1.0449

Benchmark Yields
Tenor        Maturity       Yield (%)

91d               3-Mar-16         2.99
182d             2-Jun-16         5.74
364d            1-Dec-16          6.75
2y               27-Apr-17        10.06
3y              29-Jun-19        11.30
5y              13-Feb-20        11.50

Indicative Currency Exchange Rates
                           Bid       Offer
USDNGN       197.50       199.47
EURUSD        1.0830      1.1032
GBPUSD        1.4935       1.5137
USDJPY         122.72       122.75
USDCHF       0.98675    0.9969
GBPEUR        1.3654      1.3858
USDZAR        14.5233   14.7267

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