A Review of the Nigerian Energy Industry

Financial market update

08 May 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: “The Asset Management Corporation of Nigeria (AMCON) is considering the option of taking the Nationalised banks on the sales block to the nation’s capital market, so as to give opportunity to the public to invest in the institutions, Mustapha Chike-Obi has said. Chike–Obi, managing director of AMCON, who also disclosed that over 20 institutions have expressed interest in the Keystone, Mainstreet and Enterprise banks, said the option which is being considered along others, is to further deepen the market”

EUROPE: European stocks rose the most in more than a week as German Chancellor Angela Merkel said she will receive French president-elect Francois Hollande with “open arms” as they work together to tackle the debt crisis. The Stoxx Europe 600 Index rose 0.7 percent to 254.83 at the close of trading on Monday, erasing an earlier decline of as much as 0.8 percent as a report showed German factory orders topped forecasts. Yesterday’s gain was the biggest since April 27 and takes this year’s advance to 4.2 percent.

INDIA: India’s rupee rose the most in more than a month as Finance Minister Pranab Mukherjee deferred a plan to clamp down on tax avoidance by a year, potentially spurring capital flows. The rupee advanced 1.1 percent to 52.9150 per dollar in Mumbai yesterday, the biggest gain since March 27, according to data compiled by Bloomberg.

Bonds – Quiet markets still to open the week, still very cautious trading and only some slight movements along the curve on Monday.

Bills – Profit taking on Monday leading to bearish markets pushed by some players who are using Friday’s OMO as a signal of higher yields at this week’s auction. The short end which has been bought down quite aggressively is being sold quite as intensely as it was bought over the last few weeks. Wednesday’s auction will do a lot to dictate yield direction short term.

Money Market – OBB and unsecured O/N rates went up to close at 14.00% and 14.25% as liquidity levels drop with the market short about N40bio

CBN WDAS Auction
Offered: 120mio Sold: 120mio
Marginal rate: 155.75
Weighted average: 155.78
No. of Banks: 17

FX
                           Hi              Low           Close        Prev.Close
USD/NGN   157.32/42   157.22/32   157.25/35   157.20/30

NIBOR (%) LIBOR (%)

 

O/N

 

14.3333

 

USD 1 month

 

0.2388

 

7 Day

 

14.7917

 

USD 2 month

 

0.3458

 

30 Day

 

15.1667

 

USD 3 month

 

0.4659

 

60 Day

 

15.5833

 

USD 4 month

 

0.5651

 

90 Day

 

15.9583

 

USD 6 month

 

0.7284

 

USD 12 month

 

1.0492

 

Y/Y Consumer Inflation March 2012 :

 

12.1%

 

FX Reserves: 02 May 2012 (USD bn)

 

36.706

 

MPR

 

12

 

Source: FMD and CBN

 

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