Financial market products & services update

*Financial markets.

*Financial markets.

08 February 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Minister of Information, Alhaji Lai Mohammed, has said that Nigeria’s Gross Domestic Product, GDP, will increase to $2 trillion by 2030 from its present N514 billion, if the country reduced corruption to the level of Ghana and Malaysia.
The minister, who quoted PricewaterhouseCoopers, PwC, report, while addressing members of the Advertising Association of Nigeria, ADVAN, an Association of Marketing Directors of corporate organisations and a sectoral body of the Advertising Practitioners Council of Nigeria, APCON, said: “If Nigeria reduces corruption to the level in Ghana and Malaysia, Nigeria’s GDP will increase to $2 trillion from N514 billion in 2030.

FIXED INCOME: Activities in the Fixed Income space on Friday was with mixed reactions but the bearish sentiments prevailed as market participants took profits.
We expect higher stop rates at this week’s bond auction from that of the previous action. This will sort of give direction to the bond market this week.
Money market liquidity sub N500bn.

FX: The CBN weekly Special auction for this week held Thursday and results released on Friday. The intervention rate was maintained at $/NGN 197.00.

COMMODITIES: Money managers may not agree where oil prices are headed, but they are increasingly eager to place their bets.
Total wagers on the price of crude climbed to the highest since the U.S. Commodity Futures Trading Commission began tracking the data in 2006. Speculators’ combined short and long positions in West Texas Intermediate crude, the U.S. benchmark, rose to 497,280 futures and options contracts in the week ended Feb. 2. WTI moved more than 1% each day in the past three weeks.

U.S: Money managers may not agree where oil prices are headed, but they are increasingly eager to place their bets.
Total wagers on the price of crude climbed to the highest since the U.S. Commodity Futures Trading Commission began tracking the data in 2006. Speculators’ combined short and long positions in West Texas Intermediate crude, the U.S. benchmark, rose to 497,280 futures and options contracts in the week ended Feb. 2. WTI moved more than 1% each day in the past three weeks.

CHINA: Money managers may not agree where oil prices are headed, but they are increasingly eager to place their bets.
Total wagers on the price of crude climbed to the highest since the U.S. Commodity Futures Trading Commission began tracking the data in 2006. Speculators’ combined short and long positions in West Texas Intermediate crude, the U.S. benchmark, rose to 497,280 futures and options contracts in the week ended Feb. 2. WTI moved more than 1% each day in the past three weeks.

Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2015           9.60%
Monetary Policy Rate current                              11.00%
FX Reserves (Bn $) as at February 03, 2016    28.045

Money Market Highlights
NIBOR (%)

O/N                                1.0000
30 Day                           8.2584
90 Day                           9.8583
180 Day                        11.4135
LIBOR (%)
USD 1 Month               0.4289
USD 2 Months             0.5209
USD 3 Months             0.6197
USD 6 Months             0.8672

Benchmark yields
Tenor      Maturity      Yield (%)

91d             05-May-16       4.50
182d           04-Aug-16       7.64
364d           19-Jan-17        9.04
2y                31-Aug-17      10.55
3y                30-May-18    10.88
5y                13-Feb-20      12.37

Indicative Currency exchange Rates
Bid           Offer

USDNGN         197.00           199.50
EURUSD          1.1046           1.1248
GBPUSD          1.4442           1.4644
USDJPY           117.30            117.34
USDCHF          0.98845        0.9985
GBPEUR          1.2949            1.3153
USDZAR          15.8318          16.0350

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