Please find below our Weekly Update for the week ended 13th July, 2012.
Key Highlights: -
Macroeconomic /Socio-Political Update
· Stanbic IBTC has announced that it will hold a court ordered meeting of its shareholders, in order to seek approval, to transform into a holding company.
· The Federal Government has approved a 65% levy on the importation of wheat, in addition to the 35% duty the commodity currently attracts.
Equity Market Review & Outlook
· Equities recorded mixed performances globally.
· The equity market maintained its upward trend last week as activities ended on a positive note.
Money Market Review & Outlook
· The money market was illiquid for most of last week, until inflows from a T-bill maturity of over N150.0bn moderated the pressure on interest rates.
· We expect money market rates to inch back up this week, barring any unforeseen liquidity inflow.
Foreign Exchange Market Review & Outlook
· The CBN offered a total of US$380.0m but sold US$343.5m at the WDAS auctions last week.
· We expect the Naira to continue to strengthen this week.
Bond Market Review & Outlook
· There were mixed sentiments in the bond market last week, as all short tenured instruments excluding the 5yr (4.00% FGN APR 2015) dipped in price, while bullish sentiments prevailed on all 20yr FGN bonds.
· We expect mixed sentiments to continue in the market this week.