Financial market products & services update

*Financial markets.

*Financial markets.

22 march 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: Tired of endlessly waiting for President Muhammadu Buhari to send a new draft of the Petroleum Industry Bill (PIB) to the National Assembly, the federal legislature has taken the bold step to independently initiate the bill towards its prompt passage.
Against this background, the National Assembly had designed its own version of the bill ahead of the formal presentation of its harmonized version before each chamber of the National Assembly next week.
Making this disclosure in his opening remark at a-one-day National Assembly Business Environment Roundtable held in the National Assembly yesterday, Senate President Bukola Saraki said both the Senate and House of Representatives had resolved to jointly re-draft the bill.

FIXED INCOME: Ahead of the 2-day MPC meeting (where we don’t expect any change), the market saw better buyers. Intermittent selling was seen, but overall, it was a strong tone in both T-bills and bonds. Positive sentiments with Brent above $40 and market not expecting any change at the MPC meeting seem to be the reasons behind demand. FAAC expected to meet sometime this week and this will give money market some support.

FX: The CBN weekly special auction result for last week is still being expected. The intervention rate was maintained at $/NGN 197.00

EURO: Two explosions ripped through the Brussels airport departure hall on Tuesday morning, causing deaths and injuries, according to initial Belgian news reports.
Passengers said the bombs went off in rapid succession around 8 a.m., the peak check-in hour for morning flights within Europe. Belgian police said there was, at least, one dead, while VTM news put the toll at 11, citing a local fire department.
Panicked travelers were shown fleeing toward the airport parking garage in television images. “Soldiers are pushing us back, people are running in every direction,” a witness named David told RTL television.

CHINA: In a sign of China’s increasing presence in Asia’s No. 4 economy, its companies are buying up South Korean counterparts at a record pace and the country has now surpassed the U.S. as the biggest foreign holder of won-denominated bonds.
China has been a steady buyer of South Korean sovereign debt in the past several years as officials sought to diversify investments in foreign-exchange reserves. China’s Korean holdings rose to 17.5 trillion won ($15 billion) last month, accounting for almost one-fifth of bonds owned by foreigners. Chinese companies’ investment in South Korean firms rose to a record high last year as China seeks a transition to an economy led by services and domestic demand.

COMMODITIES: Oil traded near $41 as OPEC said prices will rebound to a “moderate” level even if Iran doesn’t join other producers in freezing output.
May futures in New York were little changed after earlier climbing as much as 0.7%. The April contract expired Monday after gaining 1.2%. The drop in output outside of the Organization of Petroleum Exporting Countries and a decline in U.S. drilling shows OPEC’s strategy of letting the market rebalance itself is working, Secretary-General Abdalla El-Badri said. American crude stockpiles are forecast to rise, keeping supplies at the most since 1930.

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 18, 2016,      27.875

Money Market Highlights
NIBOR (%)

O/N                             4.9682
30 Day                        7.8016
90 Day                        9.3257
180 Day                    10.5998
LIBOR (%)
USD 1 Month           0.4283
USD 2 Months         0.5142
USD 3 Months         0.6243
USD 6 Months         0.8912

Benchmark Yields
Tenor      Maturity      Yield (%)

91d             23-June-16     5.99
182d          22-Sep-16        7.78
364d          16-Mar-17        9.16
2y               31-Aug-17        9.55
3y               30-May-18      9.97
5y               13-Feb-20       11.07

Indicative Currency Exchange Rates
Bid          Offer

USDNGN    197.50      199.50
EURUSD     1.1093      1.1296
GBPUSD     1.4163       1.4365
USDJPY      111.63        111.66
USDCHF     0.96685   0.9771
GBPEUR      1.2639     1.2841
USDZAR      15.1650   15.3683

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