A Review of the Nigerian Energy Industry

Financial market update

20 October 2011, Sweetcrude, Lagos- International News
· EUR: the Euro fell, hurt by doubts over whether European leaders will take aggressive steps at a summit this Sunday to ease the region’s debt crisis.

· CHF: the Swiss franc tracked the euro down against the dollar as investors remained doubtful as to whether euro zone politicians will take the steps necessary at an upcoming summit to ease the festering debt crisis.

· JPY: Japan’s government and central bank will set up a task force to monitor and manage progress on measures to tackle the yen’s persistent strength which is threatening the economy’s fragile recovery from the March earthquake.

Nigeria News
. Bonds –
Trading activity continues to be very patchy and volatile as the market tries to find new levels. The shocks which came from the CBN activity continues to make price discovery very difficult. The bond auctions held will dictate the direction going forward..

· Bills – In continuous reaction to the spike in rates at the primary auction, secondary market trading was very thin yesterday. With the market still struggling to come to terms with the 275bp rate hike at the extra ordinary MPC meeting on Monday

· Money Market – OBB is stable at 14.00% with unsecured rates averaging 16.00% as liquidity remains tight. Rates are expected to remain high over the week.

· NGN Foreign exchange – CBN offered and sold $250mio in the auction yesterday, Total amount demanded was $266.67 with the lowest intervention rate at 151.4495 [inc. the 1% commission], no change from the previous auction.

Hi             Low             Close           Prev.Close
   159.85/35    157.05/35    157.30/40     159.55/65

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