12 April 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s naira strengthened to its highest in almost 7 weeks as oil companies and the central bank sold dollars and the European Central bank signaled it may act to help stem the spread of the region’s debt crisis. The currency of Africa’s biggest oil producer appreciated 0.1% to 157.30 per dollar as of 4:09 p.m. on the interbank market in Lagos yesterday, its strongest since Feb. 23, according to data compiled by Bloomberg.
INDIA: Indian stocks fell to a two-week low after the Asian Development Bank and Credit Suisse Group AG cut the nation’s growth forecast to the slowest pace since 2009. The BSE India Sensitive Index fell 0.3 percent to 17,199.40 at the close yesterday. The gauge erased an intraday loss of 1 percent as European equities rebounded from a two-month low before resuming the decline after news of the Indonesian quake and tsunami warnings in part of Asia and India.
Bonds – Another rally recorded across the curve on Wednesday sustaining the spike in demand in the last week, significant dip on the 20yr 10.00% FGN JUL2030 off 30bps and the 10.70% FGN MAY2018 off 32bps in a bid to lock in at current levels due to initial news of a cut in debt issuance. April auction details have however been communicated, which will weaken the bullish move witnessed in the last days.
Bills – Bills continue to trade flat on the long dated bills as it seemed shy of auction offer volume on the 1yr at ngn80 bio yesterday, highest offered in a while. Cutoff rate has however been announced at 15.07% discount 17.64% yield, a slight dip expected today in reaction and correction to the new cut-off rates.
Money Market– OBB & Unsecured rates flat at 13.00% and 13.25% respectively, cash market remains fairly liquid up ngn102.87 bio.
CBN WDAS Auction
Offered: 150mio Sold: 150mio
Marginal rate: 155.80
Weighted average: 155.88
No. of Banks: 14
WDAS Forward Auction
Weighted Avg Spot rate | Tenor | Demand USD mn | Sold USD mn | Forward Points |
155.88 | 1 month | 60.63 | 59.96 | 1.9500 |
| 2 months | 2.55 | 0.0000 | 0.0000 | |
| 3 months | 0.0000 | 0.0000 | 0.0000 |
FX
Hi Low Close Prev.Close
USD/NGN 157.40/50 157.24/34 157.35/45 157.32/42
NIBOR (%) LIBOR (%)
| |||
| O/N
| 13.4167
| USD 1 month
| 0.2403
|
| 7 Day
| 13.7500
| USD 2 month
| 0.3496
|
| 30 Day
| 14.3333
| USD 3 month
| 0.4687
|
| 60 Day
| 14.8333
| USD 4 month
| 0.5676
|
| 90 Day
| 15.1250
| USD 6 month
| 0.7334
|
| USD 12 month
| 1.0507
| ||
| Y/Y Consumer Inflation February 2012 :
| 11.90%
| ||
| FX Reserves: 05 April 2012 (USD bn)
| 35.836
| ||
| MPR
| 12.00%
| ||
| Source: FMD and CBN
| |||
