22 February 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The National Bureau of Statistics on Wednesday released the sectoral report for Value Added Tax for the 2017 fiscal period, stating that the country generated a total of N972.34bn from the VAT. An analysis of the VAT report showed that the amount was collected from 28 sectoral activities during the period under review. A breakdown of the amount showed that the sum of N204.77bn was generated in the first quarter, while the second third and fourth quarters recorded N246.3bn, N250.56bn and N254.1bn, respectively. In the report signed by the Statistician General of the Federation and Chief Executive, NBS, Dr. Yemi Kale, the bureau said the manufacturing sector generated the highest amount of VAT revenue at N119bn. This was closely followed by the professional services sector with N87bn. On the other hand, the report stated that the mining sector generated the least VAT revenue of N168m in the one-year period.
FX: Activities in the I&E window were pretty much unchanged Yesterday, with Naira in the range of $/N 359 – 360.50. There is very little happening at the moment between banks. Yesterday’s daily turnover stood at $195.23m, the highest volume in the last 2 weeks.
FIXED INCOME: Bond auction expectations weighed in yesterday and the curve leaked wider. Prints came in at 13.70% and 13.98% on the 5year and new 10year, N79.62bn was sold vs N100bn offered.
Post auction, 2027s expected to adjust higher (close to auction level) but rest of the curve to be mostly quiet.
In the bill market, there was continued demand pushing average yields lower by 14 bps to close at 15.23%. N165bn OMO maturity today will continue to support bills.
E.U: German business confidence eased in February, suggesting that companies see little scope for a further pickup in momentum after Europe’s largest economy recorded its fastest annual growth in seven years.
The Ifo Institute’s gauge of business sentiment fell to 115.4 from a record 117.6 in January. Economists surveyed by Bloomberg predicted a drop to 117.0.
After an impressive run for the German economy in 2017, the Bundes bank has warned that companies are increasingly facing bottlenecks that could become an obstacle for an even stronger expansion.
U.K: The U.K. economy expanded less than previously estimated in the fourth quarter as consumers and businesses absorbed faster price increases.
Gross domestic product rose 0.4%, compared with an initial estimate of 0.5%, the Office for National Statistics said on Thursday. Offsetting that, the three months to September was revised up to 0.5%. In 2017, growth was 1.7%, the slowest since 2012.
Part of the economy’s weakness reflects the fallout from the pound’s drop since the vote to leave the EU in 2016. Household-spending growth slowed in the fourth quarter, leaving its full-year increase at 1.8%, the weakest in five years.
COMMODITIES: Oil slid back toward $60, dragged down with other commodities by a stronger dollar on the prospect of accelerating U.S. interest rate hikes and on concern over American crude supplies.
New York futures fell as much as 1.5% after closing lower on Wednesday for the first time in about a week. Investors are shunning risk assets from equities to industrial metals as they choose to focus on the possibility that U.S. interest rate increases will speed up after an upbeat growth outlook from the Federal Reserve. Meanwhile, the nation’s crude stockpiles are forecast to have expanded last week.
Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2017 15.13%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at February 16, 2018, 41,621
Money Market Highlights
30 Day 15.4947
90 Day 16.4743
180 Day 18.4198
USD 1 Month 1.58320
USD 2 Months 1.68886
USD 3 Months 1.82000
USD 6 Months 2.03831
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 24-May-18 14.72
182d 16-Aug-18 15.56
364d 14-Feb-19 15.35
2y 13-Feb-20 13.92
3y 17-Jan-21 13.74
5y 27-Jan-22 13.86
Indicative Currency Exchange Rates
USDNGN (I&E) 359.00 360.00
EURUSD 1.2305 1.2390
GBPUSD 1.3784 1.3986
USDJPY 107.33 107.36
GBPEUR 1.1197 1.1401
USDZAR 11.5999 11.8034
EURNGN 442.98 444.34
GBPNGN 500.62 502.02