Financial market products & services update

*Financial markets.

*Financial markets.

18 March 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Nigerian stock market recorded a turnover of N1.6bn on 201 million shares. Value and volume of transactions were below February averages by 37% and 66% respectively at the close of trading on the floor of the Nigerian Stock Exchange on Thursday.
Market breadth remained negative with 15 advances and 22 declines.
The NSE All-Share Index and NSE 30 gained eight basis points apiece, putting year-to-date returns at -10.35% and -12.37% respectively.
The NSE ASI clinched a positive close even as trading across key sectors remained mixed. Asian markets traded in the green as investors cheered clarity from the Fed on its interest rate hiking path (projection for the number of hikes was cut from four to two for 2016).

FIXED INCOME: News of the OMO auction dampened general market interest to buy assets at open yesterday. Following Wednesday’s auction prints, the expectation was for strong demand, especially in bonds.
N173bn of OMO bills matured yesterday, money market liquidity increased to N217.90bn while O/N rates eased to 5%. The bond market was mostly cautious, but we eventually saw some strong buy interest towards the close. T-Bill market exhibited similar trend as bonds.

FX: The CBN weekly special auction for this week held yesterday and the intervention rate at $/NGN 197.00

CHINA: The Yuan headed for the biggest two-day gain in a month after China’s central bank raised its reference rate by the most in November following a decline in the dollar.
The People’s Bank of China boosted its fixing by 0.51% to 6.4628 against the greenback. The Bloomberg Dollar Spot Index fell 1.1% to a five-month low on Thursday, extending its decline after the Federal Reserve Wednesday scaled back its forecasts for interest-rate increases this year.
The Yuan strengthened 0.17% to 6.4667 a dollar as of 12:30 p.m. in Shanghai, according to China Foreign Exchange Trade System prices. That extends its two-day gain to 0.9%, the most since Feb 15.

U.K: Britain faces a fall in wages and living standards after official economic forecasts were downgraded, a leading think-tank has warned.
The Institute for Fiscal Studies (IFS) said revisions to productivity forecasts set out by the Office for Budget Responsibility (OBR) would have repercussions for everyone and not just the public finances.
These changes had resulted in £56bn lost “down the back of the sofa” according to the OBR’s Budget predictions compared to its previous expectations at the time of the Autumn Statement in November.

COMMODITIES: Oil held gains near $40 a barrel after the dollar weakened amid signs central banks will continue to provide stimulus, and as U.S. output dropped to the lowest since November 2014.
Futures were little changed in New York after climbing 4.5% Thursday. The Bloomberg Dollar Spot Index held near the lowest level since June after the Federal Reserve scaled back expectations for the pace of interest-rate gains. U.S. production slide through March 11 and stockpiles expanded by 1.32 million barrels, the smallest gain in five weeks, according to an Energy Information Administration report on Wednesday.

Macro Economic Indicators
Inflation rate (Y-o-Y) for February 2016           11.38%
Monetary Policy Rate current                              11.00%
FX Reserves (Bn $) as at March 15, 2016,         27.853

Money Market Highlights

O/N                             5.3250
30 Day                        8.7758
90 Day                        9.8989
180 Day                     10.9510
USD 1 Month            0.4399
USD 2 Months          0.5240
USD 3 Months          0.6390
USD 6 Months          0.9174

Benchmark Yields
Tenor      Maturity      Yield (%)

91d             16-June-16     6.68
182d          08-Sep-16       8.03
364d          02-Mar-17      9.13
2y               27-Apr-17       9.56
3y               29-Jun-19     10.57
5y               13-Feb-20     11.30

Indicative Currency Exchange Rates
Bid          Offer

USDNGN       197.50        199.50
EURUSD        1.1184         1.1386
GBPUSD        1.4347         1.4548
USDJPY         111.30          111.32
USDCHF        0.96415      0.9742
GBPEUR        1.2703        1.2906
USDZAR        15.2167       15.4186

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