Financial market update

Local and international financial market update.
Nigeria - Nigeria is pushing to reverse years of neglect of its agriculture and mining industries by revamping railways n a big to reduce the economy’s dependence on oil. It is planned to spend more than USD3 billion to build about 300 kms rail lines over the next three years.

USA - Service industries in the US unexpectedly grew at a faster pace in November showing the biggest part of the economy is weathering concern about looming federal tax increases and spending cuts. The ISM non manufacturing index rose to 54.7 last month from 54.2 in October. The report runs counter to the groups factory survey this week showing manufacturing shrank last month indicating companies such as retailers and constructions firms that make up about 90% of the economy are more resilient to the risk of the so called fiscal cliff.

CHINA - Chinese developers are starting to venture overseas, chasing wealthy locals who are buying apartments from New York to Sydney as government restrains the property market at home. The government is maintaining property curbs introduced in the past two years to cool prices including home purchase restrictions in about 40 cities and a property tax in Shanghai and Chongqing as well as studying nationwide property taxes.

India - Indian parliament yesterday voted for a decisions by the India’s government to allow overseas retailers such as Wall Mart and Tesco to own as much as 51% of stores selling more than a single brand. Indian retail companies stand to gain from the government’s decision as it would encourage partnerships with international businesses and may bring in funding and technology.

Bonds - Wednesday saw the most volatile session of the week as yields continue to dip on the back of sustained demand feeding into the markets though volumes remain relatively low.

Bills - Very quiet on Wednesday in the secondary markets as the focus was fixed on the primary auction. As at the time of this report the results are yet to be published very likely due to the large volumes of bids received.

Money Market - OBB and unsecured O/N rates stable on Wednesday at 11.25% and 11.75%”.

CBN WDAS - CBN offered and sold $80mio, the marginal rate was maintained at 157.3176 [inc. the 1% commission]. 10 banks went for the auction.

Indicative Currency Exchange Rates
Bid               Offer
EURUSD             1.3056              1.3066
GBPUSD              1.6088             1.6098
USDJPY               82.44                82.84
USDCHF             0.9271               0.9291
GBPEUR             1.2321                1.2331
USDZAR              8.7740              8.8740
USDNGN             156.97               157.47
JPYNGN               1.9041              1.9541
CHFNGN              169.31              173.31
EURNGN              204.94             208.94
GBPNGN               252.53             256.53
ZARNGN               17.89                19.89

Commodities
Rising gasoline stockpile and weakening demand saw oil traded at its lowest levels this week. WTI is down $0.50 to $87.83/bbl while Brent settled at $108.91 (-$1.03), with the WTI-Brent benchmark premium narrowing to $20.93, the lowest since November 2.

Interest rates
NIBOR (%)                            LIBOR (%)
O/N               12.1667                USD 1 month               0.2130
7 Day             12.5000               USD 2 month              0.2580
30 Day          13.1250                USD 3 month              0.3105
60 Day          13.6667                USD 6 month              0.5250
90 Day          13.9917                 USD 12 month            0.8590
Y/Y Consumer Inflation October 2012 :                         11.70%
FX Reserves: 30 November 2012 (USD bn)                   44.47
MPR                                                                                         12.00%
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria,
Financial Market Dealers Association Standard Chartered Bank Nigeria

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