A Review of the Nigerian Energy Industry

Financial market update – 19072011

International market
EUR: The euro held steady on Tuesday, taking a breather after its slide to a record low versus the Swiss franc the previous day, but is still vulnerable to fears that Europe’s debt crisis could worsen.

AUD/NZD: The Australian dollar held its ground on Tuesday, taking only a brief knock after the Reserve bank of Australia (RBA) dropped an explicit warning of higher interest rates, while the New Zealand dollar advanced further.

CHF: The Swiss franc pulled off the previous session’s record high against the euro, with risk aversion taking a breather across the board on Tuesday.

Nigeria News

  • Bonds – Yields continue to dip across the curve in a sustained bullish run for the third consecutive week, the 20yr 10.00% FGN JUL 2030 came out the most actively traded security dipping 26bps, outlook remains bullish even as we approach the monthly auction given the liquidity levels expected in the cash markets in the coming days.
  • Bills – An active opening trading session of the week, as yields dipped further across board ahead of the expected FAAC inflow. Uncertainty pervades the market today on the back of a slowdown in inflation from 12.40 to 10.20% as well as the re-opening of the OMO window, with about NGN70bn on offer today split across the 163dy, 205dy and 324dy bills.
  • Money Market – Unsecured O/N rates up 50bps to close at 9.00%, but expected to dip as FAAC funds hit the system.
    Interbank/WDAS – $400M was offered and sold at yesterday’s WDAS auction with demand at $412.74m while CBN intervened at $/NGN151.50.

Hi Low Close Pre. Close
USD/NGN 152.30/40 151.80/90 152.10/20 152.20/30

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