A Review of the Nigerian Energy Industry

Financial market update

30 September, 2011, Sweetcrude, Lagos- International News
· EUR: The euro was on track on Friday for its worst monthly slide in nearly a year, slipping back towards an eight month low against the dollar as equities took a hit, while selling by japans’ exporters pushed it closer to a 10 year low versus the yen.

· JPY: The yen gained across the board as Japanese exporters sold both the euro and the dollars at the end of the fiscal half year, with the common currency softening against the greenback as markets ponder the next hurdles for europe to fix its debts crisis after a crucial German vote

Nigeria News
· Bonds –
Yields continue to head up in sharp reaction to the squeeze in naira liquidity and the continuous OMO activity where the CBN is issuing bills which is ultimately creating excess supply and thus pushing rates up. If the CBN continues to issue OMO bills we will continue to see yields rise.

· Bills – In reaction to the spike in rates at the primary auction the market was bearish today seeing rates up an average 55 bps across all the maturities. This comes in reaction to the increase in supply in bills to the market coming from the OMO auctions and the resulting squeeze in liquidity leading to a sell off as some players aim to raise liquidity.

· Money Market- OBB is holding at 11.25% today while unsecured O/N rates went down slightly to 11.50% on the back of an expected maturity. The CBN however were back again to offer N60bio in a 63day OMO after failing to sell more than about N6bio at yesterday’s auction further squeezing liquidity yet again.

Interbank/WDAS –

Hi Low Close Prev.Close
159.80/90 158.15/25 159.60/70 158.35/45

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