A Review of the Nigerian Energy Industry

Financial market update

28 September 2012, Sweetcrude, Lagos – Local and international financial market update.

NIGERIA: Profit taking by investors on the Nigerian Stock Exchange has continued to depress market indices, as major blue chip companies joined the league of losers on Wednesday, causing market capitalization to drop by N55 billion. Specifically, the All-Share Index of the NSE slide by 173.07 points or 0.6 per cent from 25,947.60 recorded on Tuesday to 25,774.53, while market capitalization dropped by N55 billion from N8,261 trillion to N8,206 trillion.

EUROPE: European stocks rose, with the equity benchmark heading for its biggest quarterly gain in three years, on optimism Spanish and French measures to reduce budget deficits will help resolve the region’s debt crisis. The Stoxx Europe 600 Index added 0.4 percent to 272.62 at 8:07 a.m. in London. The gauge has rallied 8.5 percent so far since July 1, heading for the biggest quarterly gain since September 2009, as global central banks expanded stimulus.

CHINA: The yuan climbed to its strongest level since 1993 on speculation China will step up efforts to arrest a seven-quarter slowdown in the world’s second-largest economy. The People’s Bank of China strengthened the reference rate by 0.08 percent today, the most since Aug. 22, fixing it at 6.3410 per dollar. The monetary authority injected a record amount of funds into the financial system this week to ease a cash squeeze in the run up to a weeklong holiday that starts Oct. 1.

INDIA: Indian stocks advanced the most in Asia as foreigners increased their holdings of local equities amid expectation the government’s policy reforms will revive investments and economic growth. The BSE India Sensitive Index, or Sensex, rose 1.4 percent to 18,831.8 at 11:47 a.m. in Mumbai.

Bonds – Strong interest from offshore investors yesterday on the GBI-EM index bonds. No significant dip recorded though due to decent supply from local traders in Thursday’s liquid session. Markets expected to remain volatile into the new week to experience the first trading day of the bonds listing on the index.

Bills – Weak demand in Thursday’s session reflective of Wednesday’s auction stop rates, yields corrected about 30bps and sustained due to another OMO auction announcement early yesterday, ngn33.49 bio was sold on Dec t-bill as liquidity mop-up continues.

Money Market – OBB and O/N rate maintained at 10.50% and 10.75% respectively, liquidity mop-up by CBN continues as ngn33.49 bio was sold yesterday via OMO auction. This still brings additional inflow of ngn22 bio after funding for both auctions.


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USD/NGN     157.45/55     157.05/15    157.15/25    157.30/40

Interest Rates

NIBOR (%)                   LIBOR (%)

O/N                10.5417      USD 1 month             0.2145

7 Day              11.2500     USD 2 month             0.2938

30 Day           13.1667      USD 3 month             0.3603

60 Day           13.7083     USD 4 month             0.4624

90 Day           14.4167      USD 6 month             0.6407

USD 12 month           0.9758

Y/Y Consumer Inflation July 2012 :                     12.8%

FX Reserves: 26 September 2012 (USD bn)       41.127

MPR                                                                             12.00%

Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market

Dealers Association Standard Chartered Bank Nigeria

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