Financial market update

 16 February 2012, Sweetcrude – Local and international financial market update.
NIGERIA: The sale of the three nationalised banks will commence any moment from now, expressions of interest in Mainstreet, Keystone and Enterprise banks, nationalised in August last year, would be sought from the public, says Mustapha Chike-Obi, CEO, AMCON. He said some investors, foreign and local had shown interest in the banks, promising that the exercise would be transparent and the playing field level for all investors. Chike-Obi also said that about N600billion had been recovered from debts owed to banks.

CHINA: Capital flows into China have rebounded this year, the central bank said, adding to the case for officials refraining from making more cuts in banks’ reserve requirements. Expectations for a decline in the value of the yuan against the U.S. dollar have also reversed.

EUROPE: Europe’s economy shrank less than economists forecast in the fourth quarter as a better-than-predicted performance in Germany and France helped mitigate the region’s first contraction since 2009. Gross domestic product in the 17-nation euro area fell 0.3 percent from the prior three months.

Bonds – Volatile session on Wednesday with lots of swings intraday. Yields closed down at the end of the day though only about 5-8bps. The DMO has come out with a rescheduled timetable for February’s auction, the auction now takes place on the 29th for settlement 2nd March, an auction advisory will be sent out closer to the auction date.

Bills – Continued bullish sentiment in the markets yesterday, the most interest is feeding into the longer dated maturities which came off about 30bps.

Money Market – OBB & unsecured rates stable yesterday at 14.00% & 15.50% respectively as liquidity remains thin.

FX
                           Hi               Low            Close               Prev.Close
USD/NGN    158.45/55    157.95/05    158.30/40        158.50/60