23 November 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigeria – The preferred bidders for the country’s power generation and distribution firms are expected to take control of the companies between June and July next year according to the Bureau of Public Enterprises (BPE). The BPE plans to start negotiations with the five preferred bidders for the generation companies and 10 for the distribution companies from the first week of December to January 2013, after which the process of transferring the companies to the bidders will commence proper
Europe – Divisions between rich and poor countries flared over the EU’s next seven year budget leading German Chancellor Angela Merkel to rule out an accord until the new year. France defended farm subsidies, Britain clung to a rebate and Denmark demanded its own refund while countries in eastern and southern Europe said reduced financing for public-works project would condemn their economies to lag behind the wealthier north.
USA – More Americans this month said the world’s largest economy will improve than at any time in the past decade led by a surge among Democrats following the re-election of President Obama. Rising home values, job growth and falling gasoline prices are shorting up household finances as retailers prepare for the holiday shopping season. Improved consumer spending is expected to sustain the expansion as lawmakers strive to avoid the so called fiscal cliff of tax increases and spending cuts
Bonds – Yesterday was marked with profit taking as yields went up to close the day. The session started with buying across the curve and yields looked set to dip but the profit taking which had dominated most of this week’s trading came out in force to push yields above the previous day’s closing levels
Bills – The Central bank came out to mop up the excess liquidity by selling N101bio in 84day and 145bio in 98 day OMO bills selling in excess of the offered amount. Rates came off in the secondary market as the liquidity put downward pressure on rates.
Money Market – OBB and unsecured O/N rates held stable again today at 10.00% & 10.25%, the market still liquid from the FAAC flows which hit the system on Wednesday but after the OMO we will likely see rates trend upward.
Indicative Currency Exchange Rates
Bid Offer
EURUSD 1.2889 1.2899
GBPUSD 1.5951 1.5961
USDJPY 82.25 82.65
USDCHF 0.9344 0.9364
GBPEUR 1.2376 1.2386
USDZAR 8.9224 9.0224
USDNGN 157.65 158.15
JPYNGN 1.9167 1.9667
CHFNGN 168.72 172.72
EURNGN 203.20 207.20
GBPNGN 251.47 255.47
ZARNGN 17.67 19.67
Commodities
Oil continues third weekly gain amidst concerns on threat to Middle East supplies and falling US crude stockpiles. No settlement for WTI yesterday due to Thanksgiving holiday but it was trading at $87.10/bbl (- $0.28), while Brent settled at $110.55/bbl (-$0.31) with the WTI-Brent benchmark premium at $23.17.
Interest rates
NIBOR (%) LIBOR (%)
O/N 10.5000 USD 1 month 0.2075
7 Day 10.8333 USD 2 month 0.2570
30 Day 11.9167 USD 3 month 0.3115
60 Day 12.4167 USD 6 month 0.5270
90 Day 13.0000 USD 12 month 0.8610
Y/Y Consumer Inflation September 2012 : 11.30%
FX Reserves: 15 November 2012 (USD bn) 43.37
MPR 12.00%
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria,
Financial Market Dealers Association Standard Chartered Bank Nigeria
Fx
Hi Low Close Prev.Close
USD/NGN 157.67/77 157.25/35 157.45/55 157.60/70
