Financial market products & services update

*Financial markets.

*Financial markets.

16 August 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Pipelines and Product Marketing Company, PPMC, earned N957 billion from the sales of petroleum products in 12 months, between July 2015 and June 2015, according to data obtained from the Nigerian National
Petroleum Corporation, NNPC.
The NNPC, in its Monthly Operations and Financial Reports for June 2016, disclosed that the amount was earned from the sales of white products, comprising Premium Motor Spirit, also known as petrol; Automotive Gasoline Oil, AGO, and Dual Purpose Kerosene, DPK. PMS sales accounted for 89.19% of PPMC’s total revenue, with N854.2 billion, while revenue from AGO and DPK sales stood at N41.2 billion and N62.376 billion respectively.

FX: Interbank Market opened with indicative levels quoted within $/NGN 315.00- $/NGN 320.50 range.

FIXED INCOME: The yields in the T-bills market opened wider this week, following CBN’s OMO activity at the close of last week.
Money Market is about N200bn short, but the N581bn Aug2016 bond maturity today should take liquidity back to positive territory. Bond market was also very muted yesterday, price action was the main characteristic of the day, and a very low traded volume level. Market is looking forward to both Bond and T-bill auction on Wednesday.

U.S: The dollar weakened versus all of its major peers and gold jumped the most in two weeks as prospects for a U.S. interest-rate hike this year remained subdued.
The Bloomberg Dollar Spot Index sank to its weakest since June ahead of U.S. reports on housing starts, inflation and industrial output. The Stoxx Europe 600 Index fell the most in two weeks as U.S. stock index futures declined. Japanese shares led losses in Asia as the yen climbed toward 100 per dollar. Crude snapped a three-day surge before American stockpiles data and nickel fell following its biggest jump of the month.

U.K: U.K. inflation accelerated in July and there were signs of further price pressures with the weak pound leading to the biggest jump in import costs in more than four years.
Consumer-price growth picked up to 0.6% from 0.5% in June, the Office of National Statistics said in London on Tuesday. Economists had forecast that the rate would stay at 0.5%, according to the median estimate in a Bloomberg survey. Input costs surged an annual 4.3% last month, ending 32 consecutive declines, while import prices jumped the most since 2011.
After weeks of surveys, the inflation numbers mark the first hard numbers on the economy in the wake of the Brexit vote in June.

COMMODITIES: Oil halted its advance below $46 a barrel after the biggest three-day gain since April as Nigeria’s oil minister signaled the prospect of production cuts from OPEC was unlikely.
Futures slid as much as 0.8% in New York after rising 9.7% the previous three sessions following comments by Saudi Arabia’s energy minister that it’s prepared to discuss stabilizing the market. Optimism by Nigeria’s Minister of State for Petroleum Emmanuel Kachikwu that OPEC will trim output is “quite sparse,”. U.S. crude stockpiles probably rose last week, a Bloomberg survey shows before government data Wednesday.

Macro economic Indicators
Inflation rate (Y-o-Y) for June 2016,              16.50%
Monetary Policy Rate current                          14.00%
FX Reserves (Bn $) as at Aug 12, 2016,          25.859

Money Market Highlights

O/N                             27.125
30 Day                        17.4150
90 Day                        18.4810
180 Day                      21.5246
USD 1 Month             0.5066
USD 2 Months           0.6325
USD 3 Months           0.8182
USD 6 Months           1.2067
USD 12 Months         1.0667

Benchmark yields
Tenor      Maturity      Yield (%)

91d            17-Nov-16        16.00
182d         16-Feb-17         19.40
364d         03-Aug-17       22.49
2y              30-May-18      18.75
3y              29-Jun-19       15.25
5y              15-Jul-21         15.12

Indicative Currency Exchange Rates
Bid           Offer

USDNGN     315.00        320.50
EURUSD      1.1160        1.1362
GBPUSD      1.2877        1.3079
USDJPY       100.38       100.31
USDCHF      0.95955     0.9697
GBPEUR      1.1418         1.1622
USDZAR      13.1973       13.3940
JPYNGN      3.3034        3.2045
CHFNGN     327.12        328.81
EURNGN     355.94       357.31
GBPNGN     413.70        415.10

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