A Review of the Nigerian Energy Industry

Financial market update – 20072011

International News
EUR: The euro eased against the dollar on Wednesday, dogged by lingering doubts over whether a euro zone summit this week will quell investors fears of contagion risks from Greece’s sovereign debt crisis.

AUD/NZD: The Australian and New Zealand dollar’s risk-inspired rally ran out of puff on Wednesday amid profit taking and some caution about how much progress will be made in resolving the euro zone’s debt woes.

CNY: The yuan hit a record high against the dollar on Wednesday morning after the People’s Bank of China set an all-time high mid-point, indicating that currency appreciation was still on the cards.

Nigeria News
Bonds – The dip in YOY Inflation rate from reflected on the yield curve in yesterday’s session, early trades pushed up prices sharply across board before some profit taking around midday, yields closed lower than opening levels as we continue to experience a bullish season in the markets. Monthly auction comes up today with 30bn, 15bn & NGN25bn on offer for the 3, 5 & 7years respectively.

Bills – A quiet session in the bills market yesterday due to the OMO auction and the news of YOY inflation rate coming out 220bps lower than the previous month. Demand still persists for bills from corporate clients, hence we expect a flat movement on yields until more liquidity hits the cash market. OMO auction cut-offs are 7.201%, 7.42% and 8.25% on the 163dy, 205dy and 324dy bills respectively.

Money Market – Unsecured O/N rates at 9.00%.
Interbank/WDAS – $250M is on offer at today’s WDAS auction.

Hi Low Close Prev.Close
USD/NGN 152.10/20 151.87/97 151.90/00 152.10/20

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