A Review of the Nigerian Energy Industry

Financial market update

28 December 2011, Sweetcrude, Lagos – Local and international financial market update.
ZAR: The south African Rand traded was little changed from its previous close and government bonds were also largely flat in sluggish trade, with most players out of the market until the start of the new year.

CHF: The Swiss franc was treading against the euro and dollar on Wednesday as investors waited for an Italian bond sale later in the week to add some impulse to sluggish year end trading. The embattled european currency, which slid against major currencies including the swiss franc this year, could come under pressure again after Italy’s 8.5 billion euro bond sale and German CPI data on Thursday

EUR: The Euro held above an 11-month low against the dollar in Asia on Wednesday.

Economic News – Nigeria

FX: The Nigerian Naira further fell against the U.S dollar, to its weakest on the back of the closure of the central bank’s official foreign exchange window for the year, putting pressure on the interbank market.

Nigerian Interbank levels traded:

Open               Close                  High                  Low

165.10/20   164.30/40      165.10/20      163.10/20

Bonds – Bearish across the curve as a whole as the market aims to position for the year end. Expectation is that market activity will continue to be muted over this festive season and in the run up to the New Year.

Bills – Very quiet trading day with only a handful of trades going through.

Money Market – OBB stable at 14.00% with unsecured rates up 100bps to 16%

NIBOR(%)                          LIBOR (%)
O/N                14.3750           USD 1 month           0.29395
7 Day              15.1250           USD 2 month           0.42220
30 Day           16.1667            USD 3 month          0.57575
60 Day           16.3333           USD 6 month          0.80400
90 Day           16.8583           USD 12 month        1.12310
Y/Y Consumer Inflation Oct 2011 :                          10.50%
FX Reserves: 15 December 2011             (USD bn) 33.152
MPR                                                                                12.00%
Source: FMD and CBN

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