A Review of the Nigerian Energy Industry

Financial market update

28 December 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Oando Plc an indigenous energy group listed on both the Nigerian Stock Exchange and the JSE Limited, has entered into agreements with ConocoPhillips to acquire its entire business interests in Nigeria for $1.79 billion (N286 billion), plus customary adjustments.

EUROPE:  The euro strengthened to an almost eight-month high versus the dollar after French consumer confidence unexpectedly improved and Italian business sentiment climbed, underpinning demand for the region’s assets. The euro appreciated 0.4 percent to $1.3280 at 8:43 a.m. New York time, after rising to $1.3308 on Dec. 19, the highest since April 3.

INDIA: Bharti Infratel Ltd., a unit of India’s largest wireless operator, slumped on its trading debut after raising 41.7 billion rupees ($760 million) in the country’s biggest initial public offering in two years. The shares fell as much as 13 percent to 192 rupees and traded at 196.60 rupees as of 11:15 a.m. in Mumbai. The benchmark BSE India Sensitive Index gained 0.5 percent.

CHINA: China’s stocks rose, capping a fourth week of gains for the benchmark index. Consumer companies jumped, while brokerages led financial companies to the biggest advance among industry groups this week. The Shanghai Composite Index rose 1.2 percent to 2,233.25 at the close, capping a 3.7 percent gain this week.

Bonds – No trading activity till Thursday 27th December as the market shut for the holidays.

Bills – The Central bank came out on Monday to offer OMO bills with tenors of 115 & 122 days, selling N37billion out of N70 billion at 13.399% on the 115day and N34.538b of N50billion at 13.44%. No secondary market activity on Monday, markets opened up again on the 27th.

Money Market – OBB and unsecured O/N rates closed on Monday at 11.00% and 11.25%.

Indicative Currency Exchange Rates
                           Bid           Offer
EURUSD       1.3246           1.3256
GBPUSD        1.6148           1.6158
USDJPY         85.75             86.15
USDCHF        0.9121           0.9141
GBPEUR        1.2189           1.2199
USDZAR        8.5710           8.6710
USDNGN       156.95           157.45
JPYNGN        1.8303           1.8803
CHFNGN       172.08           176.08
EURNGN       207.90          211.90
GBPNGN        253.44          257.44
ZARNGN        18.31              20.31

Oil rose in New York, extending the biggest weekly gain since August, as U.S. lawmakers scheduled talks aimed at averting tax increases and spending cuts that threaten the economy of the world’s largest crude consumer. Crude for February delivery climbed as much as 62 cents to $91.49 a barrel in electronic trading on the New York Mercantile Exchange. It was at $91.25 at 2:20 p.m. Singapore time.

Interest rates
NIBOR (%)                       LIBOR (%)

O/N              10.7500           USD 1 month           0.2117
7 Day            11.3333            USD 2 month           0.2550
30 Day         12.4583            USD 3 month          0.3110
60 Day         12.9583            USD 4 month          0.3630
90 Day         13.2500           USD 6 month           0.5103
USD 12 month          0.8435
Y/Y Consumer Inflation August 2012 :                   12.3%
FX Reserves: 20 December 2012 (USD bn)            44.383
MPR                                                                                 12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.


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