Financial market products & services update

*Financial markets.

*Financial markets.

25 February 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Director-General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo on Wednesday disclosed that over N30 million had been paid to about 530 investors of failed companies in the capital market under the National Investor Protection Fund (NIPF) scheme.
The NIPF was launched by the commission last year following growing complaints by market investors who couldn’t recover monies invested in bankrupt companies. The N5 billion fund is to provide temporary succour to investors who are paid between a minimum of N5,000 and maximum of N200,000 in the event of any failure instead of losing out completely.
Speaking in Abuja at the opening of a two-day workshop on Capital Market Laws, Ethics and Judicial Interpretation for Superior Court Judges which was organized by the commission, Gwarzo said the measure was among other things aimed at boosting investor confidence in the capital market.

FIXED INCOME: Real money demand pushed bond yields further south yesterday with the exception of the April 2017s. Most of the interest in bonds were apparent on the belly of the bond curve and the long end. April 2017s reversed some gains yesterday as the long end of the bill curve traded heavy. On offer at next week’s T-bill auction is N222bn and we saw some profit taking in bills to make room for more inventory.
FX: The CBN announced its weekly special auction to hold today and the intervention rate at $/NGN 197.00.

COMMODITIES: Oil traded near $32 a barrel as expanding U.S. crude inventories kept supplies at the highest level in more than eight decades.
Futures were little changed in New York, after earlier falling as much as 0.9%. Stockpiles increased for a second week to 507.6 million barrels, the most since 1930, according to an Energy Information Administration report. Prices won’t recover until the second half of next year at the earliest, Mexican Energy Minister Pedro Joaquin Coldwell said at a conference in Houston, estimating that the market is oversupplied by about 2 million barrels a day.

CHINA: China began signaling what its officials plan to present to counterparts at the two-day Group of 20 meeting starting in Shanghai Friday, laying out a platform for more government spending and renewed pledges of currency stability.
Notably rejected in comments from Finance Minister Lou Jiwei published Thursday was a proposal that emanated from some private-sector analysts for a grand, 1985 Plaza Accord-style deal among G-20 members to guide exchange rates.
Vice Finance Minister Zhu Guangyao said fiscal stimulus should be deployed to boost global growth, mirroring calls by international bodies such as the Organization for Economic Cooperation and Development to unleash new spending. Yi Gang, the deputy central bank governor, said China will maintain a relatively stable currency as it embraces market forces.

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 23, 2016,  27.801

Money Market Highlights
NIBOR (%)

O/N                                  4.5833
30 Day                             7.8350
90 Day                             9.3430
180 Day                          10.5316
LIBOR (%)
USD 1 Month                 0.4358
USD 2 Months               0.5213
USD 3 Months               0.6291
USD 6 Months               0.8810

Benchmark Yields
Tenor        Maturity          Yield (%)

91d               26-May-16          3.74
182d            18-Aug-16           6.38
364d            16-Feb-17            8.38
2y                 31-Aug-17           9.30
3y                 30-May-18         9.86
5y                 13-Feb-20          11.56

Indicative Currency Exchange Rates
Bid            Offer

USDNGN       197.00         199.50
EURUSD        1.0923        1.1125
GBPUSD        1.3810         1.4012
USDJPY         112.02         112.05
USDCHF        0.98465     0.9948
GBPEUR        1.2515          1.2719
USDZAR        15.5424       15.7509

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