Financial market products & services update

*Financial markets.

*Financial markets.

09 March 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: Nigeria’s real Gross Domestic Product, GDP, growth rate declined to 2.11% in the fourth quarter of last year compared to 2.84% in the third quarter, according to the National Bureau of Statistics, NBS.
Nigeria’s economy grew at 3.86% and 2.35% in the first and second quarters of 2015.
According to the fourth quarter report released yesterday by the statistical agency, the growth rate was lower by 0.73% relative to the growth recorded in the preceding quarter and by 3.83% in the corresponding quarter of 2014. However, quarter-on-quarter real GDP growth rate increased by 3.10%, NBS stated.

FIXED INCOME: Bond market consolidated at open yesterday as market reverted to the standard bid/offer spread of 25bps for T-bills and 15- 30kobo for bonds. The spreads were widened by the SRO in Nov last year. This adjustment caused higher bid prices at open and some dealers took the advantage and hit bids. Sentiments completely changed when details of the bond auction circular filtered in.

FX: The CBN announced its weekly special auction for this week to hold on Thursday and the intervention rate at $/NGN 197.00.

CHINA: Shares in China and Japan led losses in Asian markets, as investors continued to react to the poor trading figures released by China on Tuesday.
Falling oil prices also weighed on sentiment. West Texas Intermediate oil fell 4.3% to $36.28 a barrel and Brent crude dropped 3.4% to $39.45.
Japan’s Nikkei 225 lost as much as 1.5% in early trading and closed down 0.8% at 16,642.20. China’s Shanghai Composite was down 2.35% to 2,833.08 in afternoon trade.
“Although oil prices have risen sharply from the trough, many investors are not yet convinced if things have improved that much, and I suspect they judged now is a good time to sell,” Pine Bridge Investments’ Tatsushi Maeno told Reuters.

E.U: German Chancellor Angela Merkel said history will judge Europe harshly unless it shares the burden of accepting refugees, taking particular aim at Hungary and Slovakia for refusing to resettle asylum seekers.
The European Union will face scrutiny if it turns away from an embattled region, where the Syrian civil war has displaced millions and spurred an influx of refugees into Europe, Merkel said. She compared the continent to nations in the Middle East such as Lebanon, Jordan and Turkey that have taken in millions of Syrian refugees each.

COMMODITIES: U.S. crude production will fall to its lowest since 2013 next year as battered shale drillers idle rigs to conserve cash, according to a government report.
Producers from Texas to Alaska will pump 8.19 million barrels a day in 2017, down from 8.67 million this year and less than the 8.46 million previously forecast, the Energy Information Administration said in its monthly Short-Term Energy Outlook Tuesday. The forecast for crude output in 2016 was also cut, from 8.69 million estimated in February. The decline won’t be enough to boost crude prices beyond last year’s level, though, according to the EIA estimates.

Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2016         9.62%
Monetary Policy Rate current                         11.00%
FX Reserves (Bn $) as at March 07, 2016    27.879

Money Market Highlights
NIBOR (%)

O/N                                4.7917
30 Day                           8.0506
90 Day                           9.4052
180 Day                        11.0947
LIBOR (%)
USD 1 Month               0.4405
USD 2 Months             0.5255
USD 3 Months             0.6361
USD 6 Months             0.9006

Benchmark yields
Tenor       Maturity       Yield (%)

91d             09-June-16       5.45
182d           08-Sep-16         7.73
364d          02-Mar-17         8.87
2y               31-Aug-17          9.68
3y               30-May-18        9.99
5y               13-Feb-20         11.31

Indicative Currency Exchange Rates
                             Bid          Offer
USDNGN        197.00        199.50
EURUSD         1.0864        1.1066
GBPUSD         1.4093        1.4295
USDJPY          112.57         112.59
USDCHF         0.99425    1.0044
GBPEUR         1.2842       1.3047
USDZAR         15.3224     15.5260
JPYNGN         176.3997   176.5003
CHFNGN       200.23       201.92
EURNGN       219.15        220.51
GBPNGN        282.98      284.38

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