Daily Market Report _ Friday June 27, 2014
Augusto & Co. has upgraded the credit rating of Access Bank Plc from “A” to “A+” with a stable outlook. Access Bank Plc achieved the “A+” by actualizing a good liquidity position, satisfactory capitalization, as well as improved risk management framework which had a positive impact in asset quality. (Source: Business Newspaper). The value of non-oil products that moved out from Nigeria in 2013 rose to $2.97 billion from $2.561 billion in 2012, Nigeria Export Promotion Council (NEPC) revealed. Speaking during the NEPC workshop in Lagos, Executive Director/CEO, NEPC, Mr. Olusegun Awolowo, said that about 117 products were exported to 93 countries world-wide in 2013 as provided by Cobalt International Limited. Awolowo said that Nigeria’s exports are no longer limited to the traditional markets of Europe, especially UK and products such as cocoa, bean, palm produce, groundnuts and solid minerals (Source: Vanguard Newspaper)
Nigerian interbank lending rates were mixed on Friday, after liquidity boost from government revenue disbursals and cash calls for joint oil production. Overnight rate remained sustained at 10.50%.
FIXED INCOME MARKET
Yields on short term maturities rose for the second consecutive day, as profit taking was sustained in to Friday’s session. Demand for bonds softened following Thursday’s bullish-run (a reaction to the 3rd quarter bond issuance calendar) as most maturities recorded only marginal price gains.
THE NIGERIA INTERBANK FX MARKET
Despite opening the week on a positive note supported by dollar inflows from oil company sales, the Naira depreciated as demand from corporate bodies accelerated, pushing USD/NGN to close the week at 163.00/$.
NIGERIAN STOCK MARKET REPORT
Trading on the floor of the Nigerian Stock Exchange closed on a positive note on Friday as the NSE All Share index gained 1.10% to close at 42,187.62 points from 41,729.59 on Thursday. The market capitalization also rose to NGN13.930 trillion from NGN13.779 trillion on Thursday.
According to the Commerce Department report, U.S. consumer spending grew less than forecast in May, putting a damper on the strength of the projected rebound in U.S. economic growth this quarter. Purchases, which account for about 70% of the economy climbed 0.2% last month after being little changed in April. The report also showed American hoarded more money for a rainy day as incomes and inflation picked up.
GLOBAL CURRENCY UPDATE
The dollar posted weekly losses against major rivals on Friday. The dollar fell 0.69% to ¥101.44 from ¥102.08 a week ago. The euro moved up 0.24% to $1.3612 from $1.3600 a week ago. The pound was up 0.14% to $1.7022 from $1.7015 a week ago.
Crude oil futures on Friday suffered a second straight weekly loss as worries over the fate of Iraq’s oil exports fade and traders weighed healthy domestic U.S. crude supplies.
Gold settled higher on Friday, posting its fourth straight weekly gain, as weak U.S. data on consumer spending hurt the dollar.
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