A Review of the Nigerian Energy Industry

Financial market update

18 November 2011, Sweetcrude, Lagos – Local and international financial market update:
· USA – The USD Index retreated before a private report that economists say will show US sales of existing homes dropped last month. William C, Dudley, the president of the New York President said yesterday there is more the Central Bank can do to books the economy.

· INDIA – India’s rupee dropped to the weakest level since March 2009 (USDINR 51.1225) as Europe’s worsening debt crisis prompted investors to favour safer assets such as the dollar. This is on the back of the steepest weekly decline seen on the Sensex since in more than two years.

· CHINA – China’s stocks fell, capping the benchmark index’s steepest weekly loss in a month as home prices fell in 33 of 70 cities monitored by the government in October 2011

· CBN Governor, Mallam Sanusi Lamido Sanusi has called for a legislation that would compel multi-national companies operating in the country to list on the floor of the NSE. Sanusi said there was no reason why such firms, including MTN and Shell, among others, would continue to own 100 per cent of their equities without allowing Nigerians to be part owners. [ThisDay]

· Bonds – Auction cut-off rates came out lower yesterday as a surprise to the market, PFA’s soaked up a large portion of the volume on offer seeing this as good yields, market response however remained weak recording a slight dip across the curve, MPC meeting comes up next week.

· Bills – Fairly stable session amid flat movement recorded on yields yesterday. Three new bill maturities were issued in the last one week via the OMO auction window were listed in the secondary market today. Activities expected to slow down until the end of the week.

· Money Market – OBB up 50bps to 14.50% while unsecured moved 100bps up to 16.00%, liquidity levels continue to drop.


                               Hi                Low                 Close               Prev.Close

USD/NGN      159.40/50       157.80/90        158.70/80          157.30/40


NIBOR%                                 LIBOR (%)
O/N                 16.41670        USD 1 month               0.25480
7 Day               16.70830       USD 2 month              0.36390
30 Day            17.08330       USD 3 month               0.47940
60 Day            17.37500        USD 6 month              0.68920
90 Day            17.58330       USD 12 month             1.00760
Y/Y Consumer Inflation Oct 2011 :                               10.50%
FX Reserves: 15 November 2011                (USD bn) 33.01
MPR                                                                                   12.00%
Source: FMD and CBN

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