Financial market update

12 September, 2011, Sweetcrude, Lagos – International News      

. EUR – The Euro fell to a seven month low against the U.S dollar  by fears of a Greek default and the risk of contagion engulfing the regions banking system and larger economies.

. ZAR: South Africa’s Rand started the week on the back foot, hitting a one month low as investors pulled out of high risk assets due to heightened uncertainty about the Greek debt situation.

. GBP: Sterling hit a six-month high against the USD, as the shared currency took a broad hit in speculation that Greece may soon be forced to default on its debt

Nigeria News

·  Bonds – Somewhat of a reversal in trading activity on Friday as some demand filtered into the market leading to a dip in yields. Volumes picked up later. The auction comes up next week and we will likely see activity pick up in the run up to and right after the auction.

·  Bills – Most of the activity was concentrated on the very short dated bills with the September maturities most of the day’s focus. Volumes were relatively low with liquidity fairly tight.

·  Money Market – OBB averaged 10.25% while unsecured O/N rates are up another 25bps to close at 10.75%

·  Interbank/WDAS – $350m was offered at today’s WDAS auction


                               Hi                    Low              Close            Prev.Close

USD/NGN     155.37/47     155.00/10   155.05/15      155.50/60

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