Financial market update

10 May 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Indications have emerged that the Central bank of Nigeria may roll out new sustainable banking sector guidelines in June this year. Aig-Imoukhuede, Chairman, Sub-Committee on Economic Development of the Bankers Committee, said the committee would be discussing new guidelines that would centre on competency framework where only fit and proper individuals would handle strategic and key positions in the banking sector.

EUROPE: European stocks rose, with the region’s equities rebounding from two days of losses, as Greece’s president turned to former finance minister Evangelos Venizelos to try to form a coalition government. U.S. index futures climbed, while Asian shares were little changed. The Stoxx Europe 600 Index added 0.4 percent to 250.64 at 8:04 a.m. in London today.

INDIA: India’s trade deficit was $13.4 billion in April, the top bureaucrat in the commerce industry said, as a struggling global recovery curbed overseas shipments. Merchandise exports climbed 3.2% last month from a year earlier to $24.5 billion, Commerce Secretary Rahul Khullar told reporters in New Delhi today. Imports gained 3.8% to $37.9 billion, he said

Bonds – No change in the markets on Wednesday, trading is still very cautious some hint of demand feeding in on the short end possibly due to suspected lower cut offs and yields at the T-bill auction.

Bills – Initial sell off with some players expecting higher cut offs at the auction yesterday. However, as the auction closed and some sense of the volume and bullish nature of the bids became apparent the market bought again. Very volatile session which will be dictated in the coming days by the results of the auction.

Money Market – OBB and unsecured O/N rates up 25bps to close at 14.25% and 14.50% respectively.

CBN WDAS Auction

Offered: 150mio Sold: 150mio

Marginal rate: 155.75

Weighted average: 155.82

No. of Banks: 18

FX
                         Hi              Low           Close        Prev.Close
USD/NGN 157.70/80  157.35/45   157.45/55   157.45/55