Financial market update

04 April 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Dangote Cement Plc has indicated its plans to list on the London Stock Exchange in 2013. The Chairman of Dangote Group, Alhaji Aliko Dangote, was quoted as saying that he intended to float a 20.00% in Dangote Cement to finance its rapid expansion. “We want to list in London next year. By then the upside to our business will be much bigger than today,” Financial Times quoted Dangote as saying on Monday. The report stated that Morgan Stanley and JPMorgan had been appointed as co-leads for the London share issue.

EUROPE: European stocks dropped, paring the benchmark Stoxx Europe 600 Index’s biggest two-day rally since February, as Spanish bond yields rose and U.S. factory orders rebounded less than economists had estimated. The Stoxx 600 fell 1.1 percent to 264.29 at the close in London yesterday, extending losses in the final hour of trading.

INDIA: India’s rupee rose to the highest level in two weeks after stronger-than-expected manufacturing growth in the U.S. and China bolstered demand for riskier assets, helping emerging markets attract funds. The rupee advanced 0.3 percent to 50.7150 per dollar in Mumbai on Tuesday, according to data compiled by Bloomberg.

US: The U.S. once again may be emerging as a main engine for global growth, as Europe slides into recession and China’s economy decelerates. An improving job market, rising stock prices and easier credit are combining to lift U.S. consumer confidence and spending, with optimism measured by the Bloomberg Comfort Index near a four-year high. Personal-consumption expenditures increased by the most in seven months in February, rising 0.8 percent, the Commerce Department said last week.

Bonds – Relatively quiet market on Tuesday, very light demand feeding into the market seeing yields down around 3/4bps across the curve.

Bills – Bullish market on Tuesday ahead of the expectation of an inflow from maturing OMO bills on Thursday. Rates came off across all the maturities an average 25bps, it is unclear if the CBN will refinance the maturing bills and this is what has driven the activity yesterday.

Money Market – OBB and unsecured O/N rates are averaging at 14.50% & 15.50% respectively with the market short around N38Bio opening yesterday.

FX
                            Hi               Low             Close            Prev.Close
USD/NGN   157.60/70   157.49/59  157.52/62    157.62/72