A Review of the Nigerian Energy Industry

Financial market update

29 October 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigerian Foreign Exchange – Wednesday’s open: 157.25/35; High: 157.30/40; Low: 157.15/25; Close: 157.15/25. NGN was still range bound with mild market activity. Demand remained subdued at the WDAS window on Wednesday with $142.97mio being sold against $150mio offered. The marginal rate was maintained again at 157.3176 [inc. the 1% commission].

Nigerian Bonds – Quiet session at Wednesday’s auction to close the short week, there was some demand feeding into the markets and we saw yields down on the day representing a change in the trend seen on Monday and Tuesday.

Nigerian Treasury Bills – Primary auction on Wednesday. Market activity was generally quiet as most players got filled through the OMO auctions and were waiting on their bid results.

Nigerian Money Markets – OBB and unsecured O/N rates were stable at 12.00% & 12.50% as at Wednesday’s close.

ZAR: South Africa’s rand is expected to take its direction from a slew of month-end data due this week but the currency is expected to remain on the defensive due to a wider budget deficit and recent credit rating downgrade. The rand was at 8.6619 to the dollar, 0.3 percent weaker than Friday’s New york close.

CNH: Chinese Yuan’s hit a record high, creeping towards the strong-side limit of its daily trading band. The yuan strengthened to 6.2385 per dollar around midday, up 0.7 percent from Friday’s close of 6.2489

JPY: The yen steadied and began the week well above last week’s lows, as investors looked past the Bank of Japan’s expected easing steps and focused on U.S. economic factors.

Indicative Currency Exchange Rates
Bid           Offer

EURUSD              1.2890          1.2940
GBPUSD               1.6040          1.6090
USDJPY                79.40             79.90
USDCHF               0.9325          0.9375
GBPEUR               1.2420           1.2470
USDZAR               8.6500          8.6550
USDNGN              157.00           157.50
JPYNGN               1.9650           1.9840
CHFNGN              167.20           169.10
EURNGN              202.00          204.00
GBPNGN               251.20          254.00
ZARNGN               17.00            19.00

Oil slipped on Monday, with Brent near $109 a barrel, as refineries along the US East Coast wind down operations ahead of approaching hurricane Sandy, reducing crude use in the world’s largest oil consumer.

Interest rates
NIBOR (%)                    LIBOR (%)
O/N                12.2083      USD 1 month           0.21200
7 Day              12.8750      USD 2 month           0.26100
30 Day           13.9167       USD 3 month           0.31325
60 Day           14.5833      USD 4 month           0.38010
90 Day           15.2083      USD 6 month           0.54490
USD 12 month         0.88050
Y/Y Consumer Inflation September 2012 :         11.3%
FX Reserves: 19 October 2012 (USD bn)             42.10
MPR                                                                             12.00%

Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

                           Hi              Low        Close         Prev.Close
USD/NGN 157.30/40   157.15/25   157.15/25   157.23/33

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