Financial market update

08 March 2012m Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Zenith Bank Plc has emerged the bank with the highest market capitalisation on the NSE as at the end of the February 2012. The market capitalisation of Zenith Bank stood at N424 billion to lead the banking sub-sector. Union Bank inaugurated a new board following the injection of $500m capital by new investors and the completion of all processes required by the CBN. The bank now has a capital adequacy ratio of 19.00%, well above the CBN minimum required of 10.00%.

EUROPE: European stocks rose, rebounding from Tuesday’s biggest drop since November, after a report showed hiring in U.S. companies accelerated and as investors with more than half of Greek bonds agreed to a debt swap. The Stoxx Europe 600 Index climbed 0.6 percent to 260.10 at the close yesterday in London.

CHINA: China may report today the slowest inflation in 19 months and industrial-production growth near a two-year low, increasing odds the government will step up efforts to stimulate the economy. Consumer prices probably rose 3.4 percent in February from a year before, after a 4.5 percent increase in January, while output growth eased to 12.5 percent, Bloomberg News surveys of economists indicate.

Bonds – Bond market activities continue to be largely muted, rates up yesterday on the long end but only after dipping on Tuesday. 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 – A quiet day yesterday with the market awaiting the outcome of the bill auction also held yesterday. With rates largely flat at the primary we can expect market activity to mirror the auction and remain stable for the most part.

Money Market – OBB & unsecured rates dipped 50 & 100bps to close at 14.00% & 14.50% respectively, this comes on the back of an inflow of about N102billion from the excess crude account.

CBN WDAS Auction
CBN offered and sold $150mio, maintained the marginal rate at 157.5701 [inc. the 1% commission]
Weighted average at 157.6610 [inc. the 1% commission].

FX
                              Hi             Low             Close              Prev.Close
USD/NGN    157.65/75   157.20/30   157.42/52    157.65/75