Market Update | Treasury News |
As at Friday,January 20, 2012 |
|
Global Market Watch |
Currencies - USD rates against major currencies: |
| Euro - USD: |
1.2950 |
| Pound Sterling - USD |
1.5539 |
| USD - Swiss Francs: |
0.9334 |
| USD - South African Rand: |
7.8589 |
| USD - Yen: |
76.98 |
|
USD - Money Market Rates (%) |
Tenor |
Rates (%) |
| 1M Libor |
0.28 |
| 2M Libor |
0.41 |
| 3M Libor |
0.56 |
| 6M Libor |
0.79 |
| 1Y Libor |
1.11 |
| |
|
|
Capital Markets - All Share Index |
| DOW |
12,673.93 |
+0.40% |
| FTSE |
5,728.55 |
-0.22% |
| JSE |
33,703.38 |
+0.35% |
| NASDAQ |
2,781.61 |
-0.24% |
|
| |
Physical FORM M Approval Rate |
(FORM M APPROVAL ONLY ) |
| USD |
155.70 |
|
| EUR |
202.5501 |
|
| GBP |
241.5374 |
|
| JPY |
1.9954 |
|
| ZAR |
18.7241 |
|
| |
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|
FX Market Watch |
Foreign Exchange Market Rates |
|
CLOSING USD/N FX RATES |
Market Segment |
Bid |
Offer |
| CBN |
155.85 |
156.85 |
| INTERBANK |
160.90 |
161.00 |
| SPOT NIFEX |
- |
- |
| PARALLEL |
165.00 |
167.00 |
|
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|
|
 |
The euro dropped from a two-week high against the dollar as European stocks fell and Greek officials held debt-swap talks for a third day, damping investor demand for the shared currency. |
|
The pound strengthened versus most of its major counterparts after a government report showed U.K. retail sales rebounded in December, spurring demand for the nation’s currency. |
| |
|
WDAS: - Market Update |
| Zenith Bank WDAS Rate: 158.87 |
|
18/01/2012
Amount offered: $250.00m
Total Amount Sold: $250.00m
Weighted Average: 156.96
|
|
The Naira appreciated by 0.34% to close at 161.55 against the dollar. This was due to the sale of about $550m by NNPC. |
|
| |
WDAS-FWD AUCTION |
Tenor: 30daysDemand: $116.73m
Sold: Nil
Cut off rate: 2.0100
Maturity: 16/01/2012
|
Tenor: 60 daysDemand: $114.85m
Sold: Nil
Cut off rate: 4.1500
Maturity: 14/02/2012
|
Tenor: 90 daysDemand: $35.03m
Sold: Nil
Cut off rate: 6.2100
Maturity: 15/03/2012
|
|
| |
Bond Market Weekly Review- (December 12 - 16, 2011) |
-
Indicative Yields on 3YR,5YR, 10YR AND 20YR BONDS
|
| Bond Name |
Term To Maturity |
Closing Yield |
| 5.50% FGN FEB 2013 |
1.18 |
15.51% |
| 10.50% FGN MARCH 2014 |
2.25 |
15.05% |
| 4.00% FGN APRIL 2015 |
3.35 |
14.50% |
| 10.70% FGN MAY 2018 |
6.45 |
15.74% |
| 7.00% FGN OCT 2019 |
7.85 |
14.94% |
| 10.00% FGN JUL 2030 |
18.60 |
13.23% |
|
|
| Bond Name |
Opening Yield |
Closing Yield |
| 5.50% FGN FEB 2013 |
15.45% |
15.51% |
| 10.50% FGN MARCH 2014 |
15.02% |
15.01% |
| 4.00% FGN APRIL 2015 |
14.18% |
14.50% |
| 10.70% FGN MAY 2018 |
13.96% |
15.74% |
| 7.00% FGN OCT 2019 |
13.86% |
14.94% |
| 10.0% FGN JULY 2030 |
13.08% |
13.23% |
|
|
There was little activity in the bonds market this week. Despite the high closing yields at this week's OMO auction, the demand for short |
|
Tenured bonds remained high while there was some selling off of medium and long tenured bonds.
|
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At the bond auction on Wednesday, the 10.70% FGN May 2018 and 7.00% FGN October 2019 maturities closed at 15.93% and 15.00% respectively. |
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Next week, we expect the bonds market to remain quiet with few trades done. |
|
Money Market Watch |
-
Selected Macroeconomic Indices
|
Inflation |
| Yr/Yr ∆% |
10.30% |
(Nat. bureau of stat Dec. 2011) |
| 12mth Average |
10.80% |
(Nat. bureau of stat Dec. 2011) |
|
MPR |
12.00% |
|
| |
CURRENT WEEK |
PREVIOUS WEEK |
% CHANGE |
| |
20/01/2012 |
06/01/2012 |
|
NSE
ASI |
20,820.32 |
20,725.30 |
0.46% |
MKT
CAP |
6,560,848,127,176.92
|
6,530,905,784,265.14 |
0.46% |
|
|
|
|
Nigerian Treasury Bills Discount Rate |
Tenor |
|
Rates (%) |
| OBB: |
|
14.00 |
| Primary Market(T/bills): |
91 days (PMI): |
15.00 |
| |
182 days (PMI): |
16.989 |
| |
364 days (PMI): |
17.200 |
| Primary Market(T/bills): |
|
|
| |
91 Days (SEC): |
15.08/14.69 |
| |
182 Days (SEC): |
16.39/16.14 |
| |
1 Year (SEC): |
16.64/16.39 |
| |
|
|
| OMO |
- |
- |
| |
167 Days |
16.999 |
| |
265 Days |
17.590 |
| |
|
|
| FGN Bonds: |
6 yrs 5mths |
15.93 |
| (Primary) |
7 yrs 10mths |
15.00 |
| |
Commodity Prices |
|
|
|
| Light Crude |
(Jan 2012 deliveries) |
$94.40pb |
(+0.53) |
| Brent Crude |
(Jan 2012 deliveries) |
$104.51pb |
(+0.36) |
| Natural Gas |
(Jan 2012 deliveries) |
$3.15mbtu |
(+0.03) |
| Cocoa |
(Jan 2012 deliveries) |
$2,156.00 |
USD/Ton |
| |
|
Nibor Rates |
Tenor |
Rates (%) |
| Call |
14.42 |
| 7 D Nibor |
14.75 |
| 30 D Nibor |
15.29 |
| 60 D Nibor |
15.67 |
| 90 D Nibor |
15.92 |
|
|
| |
|
|
OBB and Overnight rates remained at 14.00% & 14.50% respectively.
|
|
Yields in the Treasury bills secondary market inched up especially at the short to medium tenured maturities.
|
|
The National Bureau of Statistics released the inflation figure for the month of December 2011 and it decreased slightly by 20 basis point to 10.30% from 10.50% the previous month. |
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The FAAC monthly allocation meeting was concluded last week and a total of N559.101B was approved to be shared by the three tiers of government. Consequently, SRA for the month is expected to start trickling into the system next week. |
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The CBN on the authority of the Debt Management Office (DMO) has on offer for sale a total of N89.76B FGN Bonds on Wednesday January 25, 2012.
Maturities on offer are May, 2018 – N19.76B, October, 2019 – N35.00B & January, 2022 – N35.00B. The FGN Bonds on offer are re-openings except the
January, 2022 maturity which is a new issue. Settlement is expected on Friday January 27, 2012. |
|
Next week, the CBN has on offer at the Treasury Bills Primary auction, a total of N141.88B (91 days – N54.88B & 182 days – N60.00B) against maturities of N130.53B. Settlement is expected on Thursday January 26, 2012. |
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We expect interbank rates will continue to inch up due to continued NNPC remittances and then dip when SRA inflows are credited into the system next week. |
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This publication is strictly for information purposes only. Zenith Bank Plc and its employees make no representation as to the accuracy and completeness of the information contained in this publication. Therefore we accept no liability for any loss that may arise from the use of such information. For further enquiries/information on this publication, please contact Egondu Uzo-Ogbonnaya, Chinyere Emuchay at the Treasury Group on 234-1-2783033 and 2782327; Eunice Sampson, Olurotimi Arowobusoye at the Research and Economic Intelligence Group on 234-1-2781049 and 2781051. |
