A Review of the Nigerian Energy Industry

Financial market update

18 May 2012, Sweetcrude, Lagos – Local and international financisal market update.
NIGERIA: The FG has announced the endorsement of an agreement that will lead to investment of about N155 billion in the country. The FG sealed the deal with Glencore. The proposed areas of investment included mining, energy and infrastructure. With its headquarters in Baar , Switzerland , Glencore is one of the world’s leading integrated producers and marketers of commodities.

US: Stocks fell, dragging the Standard & Poor’s 500 Index lower for a fifth day, as investors speculated Spanish banks may have credit ratings lowered and an American gauge of manufacturing trailed projections. The S&P 500 slipped 0.5% to 1,318.76 at 1:20 p.m. New York time and the Stoxx Europe 600 Index lost 1.1% yesterday.

INDIA: Indian stocks rebounded from their lowest level in four months amid optimism the U.S. Federal Reserve will do more to stimulate the world’s biggest economy, and as tumbling oil prices offset a weakening Indian currency. The BSE India Sensex, rose 0.3% to 16,070.48 at close yesterday. The 30-stock measure is valued at 12.5 times estimated earnings, the lowest level in more than three years, data compiled by Bloomberg show.

CHINA: China’s home prices fell in a record number of cities last month and car dealers posted inventory levels that foreshadowed deeper price cuts, adding to signs of slowing growth in the world’s second-largest economy. The nation’s expansion may drop to a 13-year low this year, a Bloomberg News survey this week showed, as Europe’s debt crisis crimps exports and a campaign to rein in property speculation curbs domestic demand.

Bonds – The auction closing lower than market expectation on both the 5 &10yr bonds at Wednesday’s auction made for a volatile start to Thursday. As market settled the stronger sentiment leaning towards rising rates filtered in with the 5 &10 yr both trading above the auction cut offs.

Bills – Rates still up an average 20bps on Thursday in the bill market as some profit takers continue to offload. Patches of demand is still feeding into the market with the focus on the long end where the yields are highest.

Money Market – OBB and unsecured O/N rates are averaging 14.00% & 15.00% respectively with market down about N91billion”

FX
Hi Low Close Prev.Close
USD/NGN 159.21/31  158.55/65  158.75/85  158.90/00

NIBOR (%) LIBOR (%)

 O/N

 15.0000

 USD 1 month

 0.2398

 7 Day

 15.3333

 USD 2 month

 0.3458

 30 Day

 15.7083

 USD 3 month

 0.4669

 60 Day

 16.0417

 USD 4 month

 0.5671

 90 Day

 16.3750

 USD 6 month

 0.7354

 USD 12 month

 1.0680

 Y/Y Consumer Inflation April 2012 :

 12.9%

 FX Reserves: 16 May 2012 (USD bn)

 37.151

 MPR

 12

 Source: FMD and CBN

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