11 November 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: Barring any last-minute change in plans, President Muhammadu Buhari will next month launch the National Economic Reconstruction and Growth Plan that will guide the Federal Government in repositioning the economy for sustainable growth.
The Minister of Budget and National Planning, Senator Udo Udoma, disclosed this on Thursday in Abuja while speaking at a national economic retreat. The retreat, according to him, was intended to provide an opportunity for stakeholders from the various sectors of the economy to consult and exchange views on the medium-term economic plan for Nigeria. The minister said the economic recovery plan would be a detailed document that would bring together various plans that had been put together by the government’s Economic Management Team.
FX: Interbank spot trading remains subdued due to the persistent lack of liquidity in the market. However, a fundamental change yesterday is the traded range – $/NGN 304.75 – 315.50.
FIXED INCOME: Money market estimated to be short approximately N42bn. The bearish sentiments in T-bills persisted as the tight liquidity encourages the selling of the short dated bills. Story in bonds is still pretty much the same – mostly quiet with a bearish bias.
CHINA: China’s stocks rose, with the benchmark index entering a bull market, as the economy showed signs of stabilization and the rollout of property curbs boosted the lure of equities.
The Shanghai Composite Index climbed 0.8% to close at 3,196.04, taking its advance from its Jan. 28 low to more than 20%.
Gains this quarter have been led by commodity producers and construction companies as the government boosts spending to bolster growth and the price of everything from coal to copper surges.
E.U: European Central Bank Executive Board member Benoit Coeure warned European leaders to learn from the U.S. presidential election, as his colleagues suggested Donald Trump’s surprise victory might burden the global economy by adding to policy uncertainty.
Global trade is facing extraordinary headwinds with Trump pledging throughout his campaign to dismantle or renegotiate deals, the U.K. set to exit the European single market, and Europe’s biggest economies striving to combat rising populism ahead of national votes. Those are downside risks for the euro area as it struggles to turn its gradual and cyclical recovery, fueled by monetary stimulus, into a structural one.
COMMODITIES: Oil extended its decline below $45 a barrel as focus shifted to OPEC’s ability to stabilize prices after markets were roiled this week by Donald Trump’s largely unexpected U.S. presidential election win.
Futures fell as much as 0.8% in New York after falling 1.4%Thursday. Prices may retreat amid “relentless global supply growth” unless the Organization of Petroleum Exporting Countries enacts significant production cuts, the International Energy Agency said Thursday.
Oil has slipped below $45 a barrel following OPEC’s failure last month to agree on output quotas for member countries. Targets must be agreed upon before the group’s deal to cut production can be finalized at a meeting on Nov. 30.
Inflation rate (Y-o-Y) for September 2016, 17.90%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Nov 08,2016, 24.062
Money Market Highlights
30 Day 17.4167
90 Day 19.4165
180 Day 22.1505
USD 1 Month 0.5364
USD 2 Months 0.6761
USD 3 Months 0.8865
USD 6 Months 1.2426
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 16-Feb-17 17.52
182d 11-May-17 17.98
364d 21-Sep-17 22.49
2y 30-May-18 19.05
3y 29-Jun-19 14.68
5y 15-Jul-21 15.13
Indicative Currency Exchange Rates
USDNGN 314.00 315.00
EURUSD 1.0776 1.0978
GBPUSD 1.2497 1.2699
USDJPY 106.64 106.66
USDCHF 0.98195 0.9920
GBPEUR 1.1485 1.1688
USDZAR 14.2198 14.4248
JPYNGN 2.8997 3.0003
CHFNGN 323.22 324.91
EURNGN 345.57 346.94
GBPNGN 400.35 401.75