A Review of the Nigerian Energy Industry

Financial market update

19 September, 2011, Sweetcrude, Lagos- International News
· EUR – The weakening of the Euro is gathering pace after a series of political setbacks in Europe prompted a flight to safety. The Euro lost about 1 percent as investors reacted badly to an unproductive

European Union.
. ZAR:
The South African Rand has fallen more than 1.6% to it softest level in over a year against the dollar as nagging problems in Europe, particularly Greece, hit risk appetite anew..

. CHF: the Swiss Franc held steady against the Euro, trading weaker than the 1.20 mark the Swiss National Bank has vowed to defend even after a series of political setbacks in Europe over the weekend prompted investors to seek safety.

Nigeria News
. Bonds –
Nigerian sovereign bond yields are expected to trend up despite lower than forecast inflation data after higher than anticipated yields at the latest auction. Yields on 3-, 5-, and 20- year bonds inched up while those on the 10-year bond fell slightly.

. Bills – market stayed relatively flat on Friday with yields on shorter dated bills coming up slightly by 15b.ps. As interest rates remain high, players continue to try to unlock liquidity at the very short end. The rest of the curve is relatively stable and it is expected to remain so until after the MPC when we will see short end demand return

. Money Market – OBB stable at 10.75% while unsecured O/N rates closed at 12.00% with liquidity very thin as provision for WDAS ($400mio) and bonds (NGN70bio) served to increase market short. FAAC for the month has been stalled, therefore expecting the market to remain relatively illiquid this week

· Interbank/WDAS – CBN has $350mio on offer today

Open        Hi             Low            Close
     156.15/25  156.25/35   155.92/02   156.10/20

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