08 November 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: Operators in the manufacturing sector were able to access foreign exchange (FX) valued at over $660 million in the interbank market to source raw materials and spare parts for their firms.
The move by the Central Bank of Nigeria, CBN, was in line with its earlier promise to ease the FX pressure on manufacturing and agricultural businesses through forward sales under the flexible FX regime.
Details obtained at the weekend indicated that the sum sourced by the manufacturers was to facilitate the procurement of raw materials for agricultural, pharmaceutical, automobile, aviation, plant and machinery, power, telecommunications, and printing, among others.
FX: The Interbank market dynamics predominantly the same. Yesterday traded range $/NGN 304.50-380.00
FIXED INCOME: T-Bill yields continued to grind lower for obvious reasons. There was no OMO auction by the CBN and there is still some cash in the money market. The demand seen was healthy across the entire bill curve. Average yield dropped 45bps to close at 18.47% Bond market remained mostly quiet.
U.S: The U.S. presidential campaign neared its end on Monday in the same angry tone it began, with Republican Donald Trump calling Democrat Hillary Clinton a “phony” and Clinton accusing him of splitting the country, as a new Reuters/Ipsos opinion poll showed Clinton with a strong chance of winning.
Clinton and Trump raced through several battleground states in a last-ditch attempt to encourage their supporters to show up and vote on Tuesday.
Clinton sought to capture more support from Latinos, African-Americans and young people, while Trump looked to win over disaffected Democrats and rev up a middle class that he said has been sidelined by the political establishment.
CHINA: A rally for Chinese banks listed in Hong Kong has cut their price gap to mainland shares in half — and that seems about as much as investors are willing to tolerate.
In the five months through September, a gauge of the big four lenders’ Hong Kong shares jumped 15% as southbound cash poured into the stocks, trumping the Hang Seng Index’s 11% advance. The banking stocks are now giving up some of their gains after the discount to their Shanghai valuations narrowed to the least in more than a year.
The declines signal that price equilibrium between Hong Kong and mainland shares — a prospect that’s been burning arbitragers for years — may still be a long way away. With inflows into the city’s shares via a link with Shanghai drying up and concerns over rising bad debt weighing on the sector, a revival of the rally in Chinese banks looks unlikely in the near term.
COMMODITIES: Gold held the steepest slump in a month as Americans prepare to cast their ballots in the U.S. presidential election after a rancorous and divisive campaign, with Goldman Sachs Group Inc. saying that Democrat Hillary Clinton is more likely to win the White House than Donald Trump.
Bullion for immediate delivery traded at $1,284.27 an ounce at 3:02 p.m. in Singapore from $1,281.64, according to Bloomberg generic pricing. On Monday, prices sank 1.8%, the most since Oct. 4, on speculation that the odds of a victory for Clinton have improved, hurting haven demand.
Macro Economic Indicators
Inflation rate (Y-o-Y) for September 2016, 17.90%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Nov 03,2016, 23.979
Money Market Highlights
30 Day 17.0577
90 Day 18.7720
180 Day 19.8925
USD 1 Month 0.5353
USD 2 Months 0.6681
USD 3 Months 0.8826
USD 6 Months 1.2454
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 02-Feb-17 15.35
182d 04-May-17 18.88
364d 21-Sep-17 21.86
2y 30-May-18 18.54
3y 29-Jun-19 14.64
5y 15-Jul-21 15.08
Indicative Currency Exchange Rates
USDNGN 314.00 315.00
EURUSD 1.0956 1.1157
GBPUSD 1.2297 1.2499
USDJPY 104.40 104.43
USDCHF 0.97295 0.9831
GBPEUR 1.1112 1.1316
USDZAR 13.4253 13.6286
JPYNGN 2.9697 3.0703
CHFNGN 323.22 324.91
EURNGN 345.57 346.94
GBPNGN 400.35 401.75