25 January 2012, Sweetcrude, Lagos – Local and international financial market update.
EMERGING MARKETS : Emerging market stocks rose to the highest level in almost three months after Apple Inc reported quarterly profits that more than double boosting the outlook for Asian exporters. MSCI emerging market index has gained 9.2% this year compared with the 5.1% advance in the MSCI World Index.
INDIA: India’s central bank which has been buying bonds to help ease a cash squeeze at banks ma scale back the purchase after it cut the reserve requirement for lenders yesterday. This could lead to a softening in yields. Loan growth in India has declined to a two year low as banks borrowed from the RBI each day since Oct 5 to meet shortages.
NIGERIA: The Senate has approved a $75 benchmark price for crude oil for the 2012 Appropriation Act, having passed the 2012-2015 Medium Term Fiscal Framework (MTFF). The Senators had earlier approved the 2012-2015 Medium Term Fiscal Framework for FG. The MTTF is a statutory requirement for submission to the National Assembly under the Fiscal Responsibility Act, 2007. The MTFF consists of the Medium Term Revenue Framework and the Medium Term
Expenditure Framework
“Bonds – Stable market, light selling on the short end still not pushing yields up. First bond auction for the year comes up on Today and this will help stimulate the long end of the curve which has been very quiet in the last few trading days.
Bills – Sustained buying across most of the maturities in the market yesterday. Auction comes up today where rates are expected to close higher than current secondary market levels and so some exceptions across some maturities bucking the general market trends.
Money Market – OBB & unsecured rates are stable at 14.00% & 14.50% FAAC flows are expected in this week after being approved early last week.
FX
Hi Low Close Prev.Close
USD/NGN 161.15/25 160.62/72 160.70/80 161.20/30
NIBOR(%) LIBOR (%)
O/N 14.7083 USD 1 month 0.2753
7 Day 15.0417 USD 2 month 0.4072
30 Day 15.5000 USD 3 month 0.5591
60 Day 15.9167 USD 6 month 0.7913
90 Day 16.2083 USD 12 month 1.1085
Y/Y Consumer Inflation December 2011 : 0.30%
FX Reserves: 16 January 2012 (USD bn) 33.72
MPR 12.00%
Source: FMD and CBN
