03 October 2017, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: Barring any unforeseen circumstances, the Ministry of Finance will soon release the second tranche of the N2.1 trillion capital expenditure for the 2017 budget.
The Minister of Finance, Mrs. Kemi Adeosun, who made the disclosure at the State House in response to enquiries by newsmen on the implementation of the budget, said the first release of N336 billion from the capital budget was made in August shortly after the government announced its preparedness to release N350 billion.
Eventually, the government released N336 billion, leaving a balance of N14 billion which the minister said was currently being processed for eventual release. According to her, the Ministry of Finance was last Tuesday compelled to announce the release of the N336 billion, following a report that the ministry had kept mum on the release of N350 billion shortly after the budget was signed by the then acting President Yemi Osinbajo on June 6, this year.
FX: Last month’s I & E window set a new high of circa $4.2bn. This is up about 7.5% from August turnover. Offshore flows into Bonds and T-bills was the Major driver of liquidity. Friday closed at 360.40 levels with a high of 361.50 and Low 350.00.
FIXED INCOME: The rally in the fixed income market gained more momentum on Friday, PFAs and other local investors were in the thick of the action.
The 20yr rallied to 15.54% levels trading over 40bn on Friday alone. This week, the rally might slow down and yields possibly retrace if there are profit takers.
T-bills were also well bid at Friday’s session reversing some of the initial sell-off at the beginning of the week. The mid to long tenor bills were the main focus of streets. Average yields in t-bill and bonds are 19.01% and 16.04% respectively. Primary Auction for T-bills this week will be another a major activity, we expect a lower stop rate in the 364-day bill from the previous auction.
U.S: President Donald Trump said he’ll travel to Las Vegas on Wednesday to meet victims and emergency workers after a killing spree late Sunday that is likely the deadliest mass shooting in modern U.S. history, presenting a test of his leadership.
“It was an act of pure evil,” Trump said in a statement at the White House on Monday. The FBI and the Department of Homeland Security are assisting in the investigation, he said.
Police said at least 59 people were killed and at least 527 others injured at a concert by a lone gunman, firing from a hotel room overlooking the venue, who later died and whose motive was unclear.
U.K: U.K. Foreign Secretary Boris Johnson insisted he was behind “every syllable” of Prime Minister Theresa May’s Brexit plan, falling into line after a succession of challenges to her authority.
After an onslaught of criticism from Conservatives at the party’s annual conference, the perennial leadership contender said he fully supported the contents of May’s Brexit speech in Florence.
COMMODITIES: Oil edged lower for the second day after a price surge last month as OPEC output climbed marginally led by gains from Saudi Arabia and Kuwait.
Futures lost 0.3% in New York after dropping 2.1% Monday. The Organization of Petroleum Exporting Countries pumped 32.83 million barrels a day in September, up 120,000 barrels a day from August, according to data compiled by Bloomberg. Libyan production is set to recover from a five-month low as the nation’s biggest field restarts following a brief halt.
Macro Economic Indicators
Inflation rate (Y-o-Y) for August 2017, 16.01%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at September 22, 2017, 32.162
Money Market Highlights
30 Day 18.7682
90 Day 21.2142
180 Day 22.5825
USD 1 Month 1.23222
USD 2 Months 1.26944
USD 3 Months 1.33389
USD 6 Months 1.50600
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 04-Jan-18 18.99
182d 29-Mar-18 18.39
364d 20-Sep-18 19.69
2y 16-Aug-19 16.17
3y 16-Aug-20 15.83
5y 27-Jan-22 15.83
Indicative Currency Exchange Rates
USDNGN 355.00 356.00
EURUSD 1.1621 1.1822
GBPUSD 1.3183 1.3385
USDJPY 113.07 113.11
GBPEUR 1.1231 1.1434
USDZAR 13.5040 13.7074
EURNGN 420.11 421.47
GBPNGN 476.12 477.52