Financial market products & services update

*Financial markets.

*Financial markets.

28 January 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: President Muhammadu Buhari, yesterday, sent his first two executive bills to the Senate, seeking to prohibit money laundering and criminal activities in the country.
Laundering (Prevention and Prohibition) Bill, 2016″ and “The Mutual Legal Assistance in Criminal Matters Bill, 2016.”
Buhari, in a letter to the Senate and addressed to the Senate President, Dr Bukola Saraki, said he was introducing the bills for formal consideration and enactment into law by the legislature.
In the letter read by Saraki, during plenary, Buhari informed that the first bill provides for the repeal of Money Laundering (Prohibition) Act 2011 as amended in 2012.

FIXED INCOME: Bonds had a muted sell-off as a result of the MPC outcome on Tuesday. The trend might continue today as players are likely to be cautious. There was some interest in the Feb 20s but buyers were happy to show an attractive bid instead of lifting offers. T-Bill market saw marginal movement, overall +5bps to close at 6.08% yield.
FAAC inflows expected by the end of this week or early next week.

FX: The CBN weekly Special action for this week will be held today and the Intervention rate at $/NGN 197.00.

COMMODITIES: Oil fell for the first time in three days as U.S. crude stockpiles expanded for a third week to a record, exacerbating a global glut.
Futures slid as much as 1.6% in New York after gaining 2.7% on Wednesday. Inventories rose to 494.9 million barrels last week, the highest in weekly data from the Energy Information Administration that started in August 1982. Russia talked down the prospect of working with OPEC to cut output after the country’s energy minister met with heads of the nation’s biggest oil companies to discuss coordinating with the group.

CHINA: China’s stocks fell as concern slumping commodity prices and a weakening economy will reduce profits overshadowed the biggest cash injection into financial markets in three years. European stock index futures fell and oil led a retreat in raw materials, while South Korea’s won weakened.
The Shanghai Composite Index fell 2.9% and contracts on the Euro Stoxx 50 Index retreated 0.4% while Japanese shares declined as the nation’s central bank started a two-day meeting. Facebook Inc.’s after-market bounce spurred gains in futures on the Nasdaq 100 Index. U.S. crude snapped a two-day advance as American stockpiles data reinforced concern a global glut is worsening. Malaysia’s ringgit rose to a seven-week high after Prime Minister Najib Razak maintained his fiscal-deficit target.

U.K: U.K. economic growth probably edged up in the final quarter of last year, leaving the expansion for 2015 as a whole at 2.2%. GDP growth is likely to have been driven entirely by the services industry, with production and construction offering no support. A modest rebound in the quarterly pace — in data to be released today — should see to it that the economy started 2016 only a smidge away from the level of output consistent with full employment. That would allay fears of a protracted slowdown, and the Bank of England will have a keen eye on the numbers for that very reason.

Macro Economic Indicators

Inflation rate (Y-o-Y) for December 2015             9.60%
Monetary Policy Rate current                                11.00%
FX Reserves (Bn $) as at January 22, 2016        28.241

Money Market Highlights

O/N                                 9.2917
30 Day                            9.1714
90 Day                         10.4810
180 Day                       11.9088
USD 1 Month              0.4306
USD 2 Months           0.5223
USD 3 Months           0.6211
USD 6 Months           0.8642

Benchmark Yields
Tenor      Maturity      Yield (%)

91d             28-Apr-16      4.47
182d          28-Jul-16        6.94
364d          19-Jan-17       8.71
2y               31-Aug-17      10.27
3y               30-May-18    10.51
5y               13-Feb-20      12.13

Indicative Currency Exchange Rates
Bid          Offer

USDNGN        197.00       199.50
EURUSD         1.0783       1.0986
GBPUSD         1.4175         1.4374
USDJPY          118.89        118.92
USDCHF         1.01175      1.0219
GBPEUR         1.3008       1.3211
USDZAR         16.2320     16.4362

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