Financial market products & services update

Financial market

*Financial market.

05 May 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Federal Executive Council ‎on Wednesday adopted 34 strategic priority programmes that the Federal Government will implement in 2016.
This took place at a meeting presided over by the Vice-President, Professor Yemi Osinbajo. Hajia‎ Ahmed who briefed State House correspondents said the 34 specific areas were grouped into four major objectives.
She said: “The first is policy, governance and security, second diversification of the economy, the third‎ is creating support for the poor and the vulnerable and the fourth is reflating our economy through investment.‎”
She said that each of these projects and programmes had very clear deliverables and targets and indicators which would be measured to ensure that the respective Ministries, Departments, and Agencies (MDAs) deliver on what they committed to implement.

FIXED INCOME: Yesterday, buyers were more evident in T-bills especially on the short-dated papers. By afternoon when bill auction whispers began to filter in, we saw some selling on the long end. Bonds started the day with another selloff and this magnified when the bond auction details hit the wires. The details were in line with expectations but prompted street to create more shorts ahead of the May 11 auction. N15bn, N40bn and N50bn will be offered on the Feb 20s, Jan 26s and March 36s respectively.

FX: The CBN weekly Special intervention is slated will hold today. The rate was maintained at $/NGN 197.00.

U.K: U.K. companies are feeling the strain from the upcoming European Union referendum, with a gauge of services falling to its lowest level in more than three years in April.
Markit Economics said its services Purchasing Managers Index dropped to 52.3 from 53.7. While that’s above the 50 level that divides expansion from contraction, it’s the weakest since February 2013 and below the 53.5 median forecasts of economists. The slump follows bigger-than-expected declines in Markit’s manufacturing and construction surveys earlier this week. The reports indicate growth of just 0.1% in April, down from 0.4% in the first quarter.

U.S: The U.S. services sector expanded in April as new orders and employment accelerated, bolstering views that economic growth would rebound after almost stalling in the first quarter.
The growth outlook was, however, dimmed by another report on Wednesday showing private employers hired the fewest number of workers in three years in April.
Economists say strong services industry activity together with a rebound in automobile sales in April reported on Tuesday, underscore the economy’s firm fundamentals that could keep the Federal Reserve on track to raise interest rates twice this year.

COMMODITIES: Iran said it’s ready for joint action with members of the Organization of Petroleum Exporting Countries once it regains the market share it had before sanctions were imposed.
Joining OPEC members in adopting a quota policy could happen one to two months after Iran reaches pre-sanctions output and export levels, National Iranian Oil Co. Managing Director Rokneddin Javadi said in Tehran.

Macro Economic Indicators
Inflation rate (Y-o-Y) for March 2016            12.80%
Monetary Policy Rate current                          12.00%
FX Reserves (Bn $) as at May 03, 2016,        26.977

Money Market Highlights
NIBOR (%)

O/N                              3.7500
30 Day                         8.6610
90 Day                        10.6737
180 Day                      12.3883
LIBOR (%)
USD 1 Month             0.4359
USD 2 Months           0.5220
USD 3 Months           0.6329
USD 6 Months           0.9071
USD 12 Months         1.06675

Benchmark Yields
Tenor      Maturity      Yield (%)

91d            04-Aug-16       8.02
182d         03-Nov-16       9.58
364d        20-Apr-17        11.85
2y             31-Aug-17        11.73
3y             30-May-18      12.10
5y             13-Feb-20        12.92

Indicative Currency Exchange Rates
Bid         Offer

USDNGN        197.50       199.50
EURUSD        1.1332        1.1533
GBPUSD         1.4377       1.4580
USDJPY          107.23       107.26
USDCHF         0.95755    0.9677
GBPEUR         1.2562       1.2766
USDZAR         15.0256     15.2372
JPYNGN         185.5997   185.6903
CHFNGN        203.44      205.13
EURNGN        224.51      225.88
GBPNGN        285.77       287.17

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