Financial market products & services update

*Financial markets.

*Financial markets.

22 February 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: After rallying for five-day the previous week following investors drive to build position ahead of probable positive earnings release by listed companies, the Nigerian equities market closed in the red last week as optimism waned, forcing anxious investors to book profit.
The equities market had closed positive the previous week with a 5.05% gain after a five-day rally which strengthened benchmark indicator by 1,187.92 points. Both the NSE-ASI and market capitalization closed higher ending the week at 24,689.69pt and N8.491trillion respectively. However, the market was volatile in most of the trading days last week as supply outstripped demand while most investors maintained cautious approach.
At the close of trades, the Nigerian Stock Exchange All-Share Index (ASI) and market capitalization depreciated by 1.04% to close the week at 24,432.51 and N8.403 trillion respectively.

FIXED INCOME: The Bond market had buyers evident on Friday session and this seems to have pushed average yield lower by an average of 5bps. Some profit taking seen in T-bills on the mid-tenor and long-dated paper. Not much selling on short-dated paper was seen on Friday as players were expecting FX refund.

FX: The CBN weekly Special auction for last week held Thursday the 18th Feb 2016 and the intervention rate at $/NGN 197.00. Results are expected today.

COMMODITIES: Saudi Arabia said its accord with Russia to cap oil production was “the beginning of a process,” but the path from a freeze to the output cuts needed to eliminate a global surplus is far from clear.
When Saudi Oil Minister Ali al-Naimi suggested that the agreement in Doha was a prelude to “other steps,” he fanned hopes that the kingdom’s resistance to production cuts was finally weakening. Oil’s recovery from a 12-year low last month was fueled by speculation that major producers were finally building a coalition that could work to end the glut. The problem with using a production freeze as the bedrock for deeper cooperation is that none of the parties involved have to make any effort to comply.

U.K: David Cameron will make his case to Parliament for the U.K. to stay in the European Union after London Mayor Boris Johnson became the highest-profile figure to say he’ll campaign to quit the 28-nation bloc.
Cameron is due to address lawmakers in the House of Commons Monday on the deal he struck with fellow European leaders to overhaul the terms of the U.K.’s EU membership. The agreement is aimed at helping him to argue that Britain is better off in the bloc going into a referendum he’s called for June 23.

CHINA: The new head of China’s securities regulator has been tasked with restoring confidence after policy missteps by his predecessor rattled investors and helped deepen a $5 trillion rout. Liu Shiyu is assuming oversight of the world’s second-largest stock market in the wake of last summer’s slump that saw Xiao Gang criticized for mismanagement. As well as needing to rebuild morale among the nation’s 99 million investors, Liu will preside over an overhaul of initial public offerings, the planned expansion of a trading link with Hong Kong and a campaign to get the nation’s shares included in MSCI Inc.’s global indexes.

Macro Economic Indicators
Inflation rate (Y-o-Y) for December 2015          9.55%
Monetary Policy Rate current                              11.00%
FX Reserves (Bn $) as at February 18, 2016     27.789

Money Market Highlights
NIBOR (%)

O/N                          1.0050
30 Day                     7.0400
90 Day                     9.2905
180 Day                   9.5423
LIBOR (%)
USD 1 Month         0.4335
USD 2 Months       0.5172
USD 3 Months       0.6182
USD 6 Months       0.8679

Benchmark yields
Tenor      Maturity      Yield (%)

91d            26-May-16      3.62
182d          18-Aug-16       6.47
364d         02-Feb-17       8.67
2y              31-Aug-17       10.23
3y              30-May-18     10.43
5y              13-Feb-20      11.82

Indicative Currency Exchange Rates
Bid          Offer

USDNGN        197.00         199.50
EURUSD        1.0987          1.1189
GBPUSD        1.4101           1.4303
USDJPY         112.81           112.84
USDCHF        0.98735       0.9977
GBPEUR        1.2706          1.2910
USDZAR        15.2971         15.500

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