09 March 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: State-owned oil firm, Nigerian National Petroleum Corporation (NNPC) on Wednesday saved the naira from depreciation when it sold $350 million to select lenders. Traders said NNPC sold around $350 million to some lenders, which provided support for the local currency, while expectations of additional sales of $350 million by the energy firm before the end of the week boosted outlook for the naira at the interbank.
EUROPE: European stocks rallied the most in a month as the deadline on Greece’s debt swap approached and Germany’s industrial output increased more than forecast. The Stoxx Europe 600 Index advanced 1.6 percent to 264.16 at the close in London yesterday, the biggest increase since Feb. 3. The measure has surged 8 percent this year as the European Central Bank lent the region’s lenders more than 1 trillion euros ($1.3 trillion) for three years to ease liquidity.
CHINA: China’s shrinking dominance over global economic growth is driving trading in the options market, where the cost to protect against losses in the nation’s biggest companies is the highest compared with the U.S. since 2008. Wen Jiabao, China’s premier, cut the country’s economic growth target for 2012 to 7.5 percent this week, compared with the median estimate of economists for a 2.2 percent expansion in the U.S., according to data compiled by Bloomberg.
Bonds – Bond market activities continued to be largely muted on Thursday. We won’t likely see any major moves until the run up to the MPC meeting in a week and a half and possibly after depending on the outcome.
Bills – Focus in the market still remains on the short dated maturities, bearish sentiment all around as the CBN came out again yesterday to offer N50bio in OMO bills, re-opening the 364day bill issued on Wednesday at a maximum discount of 15.57% same as the rate at the primary auction.
Money Market – OBB & unsecured rates both dipped another 50bps to close at 13.50% & 14.00% respectively, this comes on the back of an inflow of about N102billion from the excess crude account and even as the CBN offered OMO bills of N50bio to mop up liquidity.
Hi Low Close Prev.Close
USD/NGN 157.42/52 157.18/28 157.40/50 157.42/52
NIBOR (%) LIBOR (%)
|O/N||14.2500||USD 1 month||0.2418|
|7 Day||14.6417||USD 2 month||0.3505|
|30 Day||15.1667||USD 3 month||0.4736|
|60 Day||15.6250||USD 4 month||0.5839|
|90 Day||15.9167||USD 6 month||0.7442|
|USD 12 month||1.0554|
|Y/Y Consumer Inflation January 2012 :||12.60%|
|FX Reserves: 01 March 2012 (USD bn)||34.705|
|Source: FMD and CBN|