A Review of the Nigerian Energy Industry

Financial market update

4 October 2011, Sweetcrude, Lagos- International News
USD – the dollar was supported near a 9 month high against a basket of currencies with the market gripped by fear that the debt crisis in Europe could unleash substantial damage on the global economy. The Euro hit a 9-month low before posting a slim recovery, while the AUD slipped to a one year trough as market players continued to pull funds out of shares , copper and other risky growth-linked assets.

INR: the Indian rupee weakened for a third session as concerns of grave injury to the world economy from Europe’s debt imbroglio hit risk appetite, sending stocks down and the dollar surging against major currencies

Nigeria News
· Bonds –
Yields continue to tick up in reaction to CBN’s liquidity mop up. rates moved up 70-100bps on the shorter end of the curve while rates for longer tenor instruments move up by 25bps..

· Bills – Market was bearish on Friday with rates s up about 150bps. Expect more correction and further sell-off as liquidity remains tight

. Money Market – OBB and O/N holding at 11.25% and 11.50% respectively. expect rates to maintain the same as CBN strives to mop up liquidity in the market.

Interbank/WDAS –
Hi            Low              Close        Prev.Close
159.40/50     160.52/62     159.40/50     159.50/60

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