Financial market update

11 June 2012, Sweetcrude, Lagos - Local and international financial market update.
NIGERIA: THE Nigeria Deposit Insurance Corporation (NDIC) and the Chartered Institute of Bankers of Nigeria (CIBN) have urged the Senate to retain the autonomy of the CBN in line with global best practices and in accordance with the 2007 Act of the apex bank. The support for the apex bank’s autonomy formed part of the NDIC’s memorandum to the joint Senate Committee on Banking, Insurance and other Financial Institutions and Judiciary, Human Rights and Legal Matters on the Amendment of the CBN Act 2007.

EUROPE: Spain asked euro region governments for a bailout worth as much as 100 billion Euros ($125 billion) to rescue its banking system as the country became the biggest euro economy so far to seek international aid.

The Spanish government declares its intention of seeking European financing for the recapitalization of the Spanish banks that need it, a statement by euro region finance ministers said the loan amount will “cover estimated capital requirements with an additional safety margin.”

CHINA: China’s exports grew in May at more than double the pace analysts estimated while industrial output and retail sales trailed forecasts, signaling last week’s cut in interest rates was aimed at countering a domestic slowdown. Overseas shipments climbed 15.3 percent from a year earlier. Industrial output rose by less than 10 percent for a second month and retail sales increased the least in almost six years excluding holiday-month distortions.

INDIA: India’s rupee strengthened on speculation a bailout of Spanish banks is a sign Europe is making progress on tackling its debt crisis, boosting demand for emerging-market assets. Spain asked euro-region governments over the weekend for as much as 100 billion Euros ($126 billion) to help shore up its lenders. The BSE India Sensitive Index of shares rose for a sixth day, taking its rally since June 1 to 5.6 percent.

Bonds - Quiet markets on Friday, lightly bearish to close the week as expectation from market players is that yields will likely rise due to weak offshore demand, pressure on the currency and rising inflation.

Bills - Relatively flat on the short dated bills, yields around 180days came up an average 10-15bps while the long end came off between 25-30bps. Volatile markets all around as rates across the tenors struggle to adjust at the new levels.

Money Market - OBB and unsecured O/N rates holding at 14.00% & 14.50%. Liquidity levels still relatively low.

FX
                         Hi               Low          Close         Prev.Close
USD/NGN  162.70/80  162.30/40  162.68/78  162.45/55

NIBOR (%) LIBOR (%)

 

O/N

 

14.9583

 

USD 1 month

 

0.2408

 

7 Day

 

15.2500

 

USD 2 month

 

0.3468

 

30 Day

 

15.6667

 

USD 3 month

 

0.4679

 

60 Day

 

15.9167

 

USD 4 month

 

0.5681

 

90 Day

 

16.2917

 

USD 6 month

 

0.7369

 

USD 12 month

 

1.0702

 

Y/Y Consumer Inflation March 2012 :

 

12.9%

 

FX Reserves: 24 April 2012 (USD bn)

 

37.699

 

MPR

 

12.00%

 

Source: FMD and CBN