A Review of the Nigerian Energy Industry

Financial market update

25 September 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Bureau of Public Enterprises has said that the financial bids for the five power generation companies slated for privatization will be opened in the public tomorrow in Abuja. It also announced the postponement of the financial bid opening for prospective investors in the distribution companies carved out of the Power Holding Company of Nigeria. A statement issued by the Head of Public Communications, BPE, Mr. Chukwuma Nwokoh, said Tuesday’s opening of the financial bids for the generation firms would be opened to stakeholders and the media.

EUROPE: European stocks climbed, paring yesterday’s slide, as investors awaited reports on U.S. consumer confidence and house prices. The Stoxx Europe 600 Index advanced 0.3 percent to 275.45 at 8:41 a.m. in London as more than two stocks rose for every one that fell. The equity benchmark has rallied 18 percent from this year’s low on June 4 as European Central Bank policy makers agreed to implement an unlimited bond-buying program and the Federal Reserve unveiled a third round of asset purchases.

INDIA: Most Indian stocks declined amid concern valuations may have exceeded the outlook for earnings. The BSE India Sensitive Index fell 0.1 percent to 18,657.37 at 11:57 a.m. in Mumbai. Three shares retreated for every two that rose on the 30-stock measure. The measure’s price-earnings ratio is at a six-month high, and its 14-day relative strength index, which gauges how rapidly prices rose or fell in the period, was at 72 yesterday. Some investors see readings above 70 as a signal to sell.

Bonds – Sell-off sustained in the market all through Monday’s session, 16.39% FGN JAN2022 up 93bps and 15.10% FGN APR2017 up 107bps as the major movement on the curve yesterday.

Bills – Active session as liquidity returns to the market, early OMO auction announcement however reduced the impact of low lending rates which would have increased demand, no sale at yesterday’s OMO auction but demand expected to remain weak taking a cue from the significant correction in the bond market.

Money Market – OBB and O/N rate at 10.50%, market remains liquid with no sale at today’s OMO auction.

CBN CUT- OFF RATE – $/NGN 155.78
No. of Banks- 19

                            Hi                Low         Close        Prev.Close
USD/NGN    157.80/90   157.55/65   157.75/85   157.70/80

Interest rates
NIBOR (%)                     LIBOR (%)
O/N                10.5417        USD 1 month            0.2165
7 Day              10.8333       USD 2 month            0.2958
30 Day            11.8333       USD 3 month            0.3673
60 Day            12.3333       USD 4 month           0.4681
90 Day            12.7500       USD 6 month           0.6512
USD 12 month         0.9823
Y/Y Consumer Inflation July 2012 :                     12.8%
FX Reserves: 20 September 2012 (USD bn)       40.900
MPR                                                                             12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria

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