Financial market update

14 March 2012, Sweetcrude, Lagos – Local and international financial market update
NIGERIA: Nigeria’s economy expanded 7.7 percent in the fourth quarter from a year ago as a surge in mobile-phone users in Africa’s most populous nation helped to boost telecommunications. Growth in gross domestic product accelerated from 7.4 percent in the third quarter, the Abuja-based National Bureau of Statistics said on its website on Tuesday. The economy grew 7.4 percent for the whole of 2011. The naira advanced 0.2 percent to 157.95 against the dollar by 3:17 p.m. on the interbank market in Lagos yesterday, on news of this data.

EUROPE: European stocks advanced, with the Stoxx Europe 600 Index climbing to the highest since July 26, as reports showed German investor confidence in March increased more than forecast and American retail sales rose in February. The Stoxx 600 added 1.8 percent to 269.56 at the close on Tuesday, after euro-area finance ministers signed off on a second bailout for Greece.

US: Stocks gained, driving the Standard & Poor’s 500 Index to the highest level since 2008, while copper rallied and Treasuries fell as U.S. retail sales grew at the fastest pace in five months. Retail sales jumped 1.1 percent in February, after a 0.6 percent increase in January that was larger than previously estimated, the Commerce Department said. The S&P 500 added 0.9 percent to 1,382.95 at 12:45 p.m. New York time yesterday.

INDIA: India’s rupee rose to a one-week high on optimism overseas investors will boost purchases of local assets after government data showed factory output rose at the fastest pace in seven months. The rupee advanced 0.1 percent to 49.9363 per dollar in Mumbai on Tuesday, according to data compiled by Bloomberg.

Bonds – Some very light selling on Tuesday, market activities continue to remain relatively quiet.

Bills – Some demand feeding in across the piece as a whole yesterday, yields dipping an average 10-15bps.

Money Market – OBB & unsecured rates close at 14.00% & 14.50% respectively, market is being kept fairly liquid by an inflow from the excess crude account last week.

FX
                              Hi               Low              Close            Prev.close
USD/NGN  157.92/02     158.15/25    157.79/89    157.80/90