A Review of the Nigerian Energy Industry

Financial market update

10 February 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Application list for the N10 billion rights issue by Union Bank of Nigeria (UBN) Plc closes today, amidst expectations that the success of the Rights Issue would herald a new period of stable growth for the first generation bank. UBN is offering about 1.41 billion ordinary shares of 50 kobo each at N6.81 per share in the ratio of five new ordinary shares for every nine ordinary shares held as at the October 21, 2011″. [Guardian]

EUROPE: European finance chiefs are set to defer endorsing a decision on a 130 billion-euro ($173 billion) rescue for Greece, saying they still need to examine the austerity deal struck by Greek leaders yesterday.

INDIA: Tata Steel Ltd., India’s biggest producer, swung to an unexpected loss in its third quarter after raw material costs gained and demand and prices fell in Europe, its largest market.

CHINA: Chinese Commerce Minister Chen Deming said exports probably fell in January after foreign trade slowed in the second half of last year, as he pledged to maintain “stability” in the yuan’s exchange rate. Export data was due on Wednesday, with the median estimate of analysts showing a 1.4 percent decline from a year earlier.

USA: After Greek politicians yesterday agreed on austerity measures needed to qualify for international aid, treasury yields increased three basis points to 2.05 percent. The Standard & Poor’s GSCI Index of 24 commodities also rose for a fifth straight day as industrial metals led gains. The S&P 500 slipped 0.1 percent after reaching a seven-month high on Wednesday.

Bonds – The curve looked like attempting to correct yesterday with the short end dipping while the yields on the long end went up. Not a particularly active day with only a handful of trades going through.

Bills – On the back of Wednesday’s auction results some light demand fed into the secondary market on Thursday. There seems to be a lot of demand feeding into theprimary auctions from both local and offshore investors.

Money Market – OBB & unsecured rates closed at 14.00% & 14.50% respectively.

Fx
                              Hi                  Low              Close             Prev.Close
USD/NGN     159.62/72   158.95/05    159.15/25       160.40/50

 NIBOR(%)

 

LIBOR (%)

 

O/N

 

14.7083

 

USD 1 month

 

0.2535

 

7 Day

 

15.0833

 

USD 2 month

 

0.3760

 

30 Day

 

15.6250

 

USD 3 month

 

0.5100

 

60 Day

 

16.0417

 

USD 6 month

 

0.7586

 

90 Day

 

16.4333

 

USD 12 month

 

1.0725

 

Y/Y Consumer Inflation December 2011 :

 

10.30%

 

FX Reserves: 02 February 2012 (USD bn)

 

34.7

 

MPR

 

12.00%

 

Source: FMD and CBN

 

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