Financial market products & services update

*Financial markets.

*Financial markets.

01 September 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: Nigeria’s government has approved a three-year plan to borrow more from abroad, Finance Minister Kemi Adeosun said on Wednesday after the economy slipped into recession for the first time in more than 20 years. The government has so far disbursed more than 400 billion Naira in capital expenditure this year, part of a record 6.06 trillion naira ($30 billion) budget for 2016, Adeosun said last week. But with lower oil prices and attacks on oil facilities, it has struggled to fund its budget, aimed at averting the recession.

FX: NIFEX printed at $/NGN338.18 at yesterday’s close

FIXED INCOME: Fixed income market traded heavy at the start yesterday due to the disappointing data releases. July inflation prints came in at 17.10% vs. 16.50% in June; GDP contracted -2.06% in Q2 2016 year on year. Demand seen in bonds later in the day was basically on the back of short covering. Bill market followed the same pattern, short covering was seen post auction results. Auction prints came in at yields of 14.92%, 19.17% and 22.57% on the 91, 182 and 364day respectively. O/N rate closed at 15%

COMMODITIES: Oil rose after dropping the most in a month as Saudi Arabia said it won’t boost output to capacity and flood a market that’s contending with a global inventory overhang of crude and fuel supplies. Brent for November settlement was 18 cents higher at $47.07 a barrel on the London-based ICE Futures Europe exchange.

U.K: U.K. factory activity reached a 10-month high in August as the weaker pound helped Manufacturing bounce back from a post-Brexit slump. IHS Markit said its Purchasing Managers Index, which dropped below the key 50 level in July, jumped by a record to 53.3. Britain’s decision in June to leave the European Union initially sent measures of confidence and activity plunging, prompting an injection of new stimulus by the Bank of England last month. Surveys have since partly recovered, though uncertainty over how the U.K. will actually exit the bloc remains an issue.

CHINA: China’s official factory gauge unexpectedly rose last month to the highest level in almost two years, suggesting the economy’s stabilization remains intact and that a weakening in July was flood-related and temporary. Manufacturing purchasing managers index rose to 50.4 in August from July’s 49.9 and compared to the 49.8 median estimate of economists surveyed by Bloomberg. Non-manufacturing PMI stood at 53.5 compared with 53.9 in July. Numbers above 50 indicate improving conditions.

Macro Economic Indicators
Inflation rate (Y-o-Y) for July 2016,             17.13%
Monetary Policy Rate current                        14.00%
FX Reserves (Bn $) as at Aug 30, 2016,       25.436

Money Market Highlights

O/N                              19.4583
30 Day                         16.8564
90 Day                         17.7477
180 Day                       20.4741
USD 1 Month              0.5248
USD 2 Months           0.6630
USD 3 Months           0.8393
USD 6 Months           1.2445
USD 12 Months         1.06675

Benchmark Yields
Tenor Maturity Yield (%)

91d 01-Dec-16             16.24
182d 02-Mar-17          19.49
364d 03-Aug-17          21.87
2y 27-Apr-17                19.89
3y 29-Jun-19               15.39
5y 15-Jul-21                 15.14

Indicative Currency Exchange Rates
Bid              Offer

USDNGN        310.00           310.50
EURUSD        1.1049            1.1251
GBPUSD         1.3151            1.3353
USDJPY          103.50           103.53
USDCHF        0.98095        0.9911
GBPEUR        1.1783            1.1987
USDZAR        14.5214          14.7248
JPYNGN        327.4497       327.5503
CHFNGN       342.92           344.61
EURNGN       368.45          369.81
GBPNGN       423.62          425.02

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