A Review of the Nigerian Energy Industry

Financial market update

04 October 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The nation’s foreign exchange rose further to $41.3 billion even as the Central Bank of Nigeria, CBN, sold $177 million at the bi-weekly Wholesale Dutch Auction System, WDAS, session. According to the CBN, foreign reserves rose to $41.33 billion on Tuesday from $41.186 billion at the end of last month. This represented a 0.3 per cent increase and a 26 month high when compared with its level of $38.59 billion as at August 10, 2010.

EUROPE: European stocks advanced as investors awaited a policy meeting by the euro area’s central bank, amid speculation on the timing of a Spanish bailout. The Stoxx Europe 600 Index rose 0.5 percent to 272.59 at 8:06 a.m. in London. The benchmark measure fell 2.7 percent last week as Germany and France disagreed on the timing of a banking union in the euro area and concern grew that the latest round of U.S. stimulus won’t be enough to spur growth. The gauge has still climbed 11 percent this year.

INDIA: Indian stocks rallied to the highest level in 17 months as investors added to their holdings before the cabinet considers today further measures to open up Asia’s third-largest economy to foreign investment. The BSE India Sensitive Index, or Sensex, jumped 1 percent to 19,080.56 at 9:37 a.m. in Mumbai, heading for its highest close since April 29, 2011.

Bonds – Fairly bearish session yesterday as demand remains weak in the new month. Not much expected till end of the week except we hit 13.00% yield levels on the JPM index bonds which will reignite buying interests.

Bills – Calm session with few trades due to another OMO auction announcement. Nothing was sold at Wednesday’s auction and we can expect a buyer’s market today when a t-bill matures and cash is paid to the market.

Money Market – OBB and O/N rate close at 10.50% and 11.00% respectively.

AMOUNT ON OFFER – $ 200mio
AMOUNT SOLD – $ 177.99mio
CBN CUT- OFF RATE – $/NGN 155.77

Indicative Currency Exchange Rates
                                     Bid             Offer
EURUSD                   1.2940         1.2950
GBPUSD                    1.6109         1.6119
USDJPY                     78.59           78.99
USDCHF                    0.9377        0.9397
GBPEUR                    1.2449         1.2459
USDZAR                    8.4337         8.5337
USDNGN                   157.13          157.63
JPYNGN                    1.9994          2.0494
CHFNGN                   167.57          171.57
EURNGN                   203.33         207.33
GBPNGN                    253.12         257.12
ZARNGN                    18.63           20.63

Oil traded near a two-month low in New York after the government reported that U.S. crude production climbed to the highest level in more than 15 years while fuel consumption decreased. Crude for November delivery was at $88.29 a barrel, up 15 cents, on the New York Mercantile Exchange at 2:33 p.m. Tokyo time.

Interest rates
NIBOR (%)                     LIBOR (%)
O/N            10.6667       USD 1 month        0.2185
7 Day          11.0000       USD 2 month       0.2875
30 Day       12.5417        USD 3 month        0.3525
60 Day       13.0417        USD 4 month       0.4426
90 Day       13.3333        USD 6 month       0.6224
USD 12 month      0.9590
Y/Y Consumer Inflation August 2012 :         11.7%
FX Reserves: 02 October 2012 (USD bn)     41.330
MPR                                                                      12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market
Dealers Association Standard Chartered Bank Nigeria

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USD/NGN  157.30/40  157.10/20  157.13/23  157.30/40

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