Financial market products & services update

*Financial markets.

*Financial markets.

10 May 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Nigerian capital market on Monday continued its gaining spree two sessions into the signing of the budget into law by President Muhammadu Buhari. The Nigerian Stock Exchange market capitalisation rose by N44bn to close at N8.884tn from N8.840 at the close of trading on the floor of the Exchange. The market had gained N47bn on Friday last week amid reports that the budget had been signed.
A total of 29 stocks made the gainers’ chart while 18 laggards were recorded.
The NSE All-Share Index took a leap by 25,828.30 basis points from 25,701.60 basis points. A total of 559.955 million shares worth N6.441bn exchanged hands in 3,655 deals.

FIXED INCOME: Quiet session yesterday to start the week. Spreads in both bonds and T-bills closed a couple bps tighter. Initially, we saw some weakness in bonds but we subsequently drifted tighter on intraday short covering. With no OMO auction and the street still finding solace in short-dated bills, we could see the bears return to bonds today ahead of the bond auction.

FX: The results of the CBN weekly Special intervention that held last week is expected today. The rate was maintained at $/NGN 197.00.

U.K: The U.K. economy received no help from its international trade performance in the first quarter, official figures published Tuesday suggest.
The deficit widened to 13.3 billion pounds ($19 billion), the most since the start of 2008, from 12.2 billion pounds in the fourth quarter of 2015, the Office for National Statistics said. The shortfall in goods alone was the widest since records began in 1998.
The figures reinforce a picture of an economy being driven by domestic spending, with net trade set to act as a drag on growth for the third quarter in a row.

CHINA : China’s consumer prices continued rising at a healthy clip, though still below the government’s target pace while factory-gate deflation narrowed more than expected.
The consumer-price index rose 2.3% in April for a third straight month, matching economist estimates in a Bloomberg survey. The producer-price index fell 3.4%, less than the 3.7% decline analysts estimated and the 4.3% drop in March.
Stronger inflation, mainly driven by food prices, may give the People’s Bank of China reason to hold off on reducing the main interest rate, which is already at a record low. Four years of factory-gate deflation has eased as a property recovery helps demand.

COMMODITIES: Oil swung between gains and losses as U.S. stockpiles are forecast to expand by the least since a loss a month ago and after Canadian producers began the process of restarting operations after wildfires.
Futures in New York gained as much as 1.2% after earlier falling by 0.9%. U.S. crude inventories probably expanded by 750,000 barrels last week, a Bloomberg survey shows before government data Wednesday. That would be the least since a decline in the week ended April 1. Royal Dutch Shell Plc has resumed output at its Albian Sands project while companies from ConocoPhillips to Suncor Energy Inc. are assessing restarts.

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 06, 2016,    26.898

Money Market Highlights

O/N                              3.7500
30 Day                         8.2335
90 Day                       10.6592
180 Day                     12.0757
USD 1 Month            0.4379
USD 2 Months          0.5211
USD 3 Months          0.6296
USD 6 Months          0.9071
USD 12 Months        1.06675

Benchmark Yields
Tenor      Maturity      Yield (%)

91d            11-Aug-16        7.58
182d         03-Nov-16       9.05
364d        20-Apr-17       12.05
2y             31-Aug-17       11.89
3y             30-May-18     12.21
5y             13-Feb-20      13.03

Indicative Currency Exchange Rates
Bid         Offer

USDNGN        197.50       199.50
EURUSD         1.1286       1.1488
GBPUSD         1.4347       1.4549
USDJPY          109.18       109.21
USDCHF         0.96775    0.9779
GBPEUR         1.2585       1.2790
USDZAR         15.2241     15.4282
CHFNGN        203.44      205.13
EURNGN        224.51       225.88
GBPNGN        285.77       287.17

About the Author