A Review of the Nigerian Energy Industry

Financial market update

04 February 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Niger Delta Solidarity Forum has heaped encomiums on Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, for the increase in oil production from 800,000 barrel per day to 2.6 million barrel per day. Spokesman of the forum, Comrade Julius Ezimah, who spoke to newsmen in Abuja about the minister’s concerted efforts, said the increase is capable of moving the nation forward. He also noted that the generation of 5000 mega watts of electricity is the first of its kind in Nigeria, adding that this will enable youths to be gainfully employed and reduce insecurity across the nation.

EUROPE: European stock-index futures rose as China’s services industries grew at a fastest pace and Swatch Group AG reported increased profit. Futures on the Euro Stoxx 50 Index expiring in March advanced 0.1 percent to 2,711 at 7:09 a.m. in London. The benchmark Stoxx Europe 600 Index has gained 3.1 percent this year, reaching the highest level in almost two years last week, amid better-than-estimated company earnings and an agreement by U.S. lawmakers on a compromise federal budget.

INDIA: Indian stocks advanced for the first time in three days, led by Tata Motors Ltd. and ICICI Bank Ltd. The BSE India Sensitive Index, or Sensex, rose 0.4 percent to 19,865.99 at 9:56 a.m. in Mumbai.

CHINA: China’s services industries grew at the fastest pace since August as gains in retailing and construction aid government efforts to drive a recovery in the world’s second-biggest economy. The non-manufacturing Purchasing Managers’ Index rose to 56.2 in January from 56.1 in December, the Beijing-based National Bureau of Statistics and China Federation of Logistics & Purchasing said in a statement yesterday. A reading above 50 indicates expansion.

Bonds – Quiet markets on Friday, yields continued to inch downward. Yields expected to continue the downward trend over the next few weeks.

Bills – The Central Bank came into the market on Friday to offer N100billion in OMO bills, selling N74billion in 13 & 22 days at 12.00% and 12.10%. The OMO activity has caused a sell off on the short end which might be presently oversold for the time being. Quiet in the secondary markets on Friday.

Money Market – OBB and unsecured O/N rates closed last week at 11.75% and 12.00%. Rates inching back up as the CBN keeps up with its mopping up of liquidity through OMO.

Indicative Currency Exchange Rates
Bid            Offer

EURUSD                1.3633         1.3643
GBPUSD                1.5711           1.5721
USDJPY                 92.81            93.21
USDCHF               0.9087         0.9107
GBPEUR                1.1522          1.1532
USDZAR                8.8642         8.9642
USDNGN               156.95          157.70
JPYNGN                 1.6911          1.7411
CHFNGN                172.72         176.72
EURNGN               213.97          217.97
GBPNGN               246.58         250.58
ZARNGN              17.71                19.71

Oil was little changed in New York after capping the longest stretch of weekly advances in more than eight years amid signs of economic recovery in the U.S. and China, the world’s biggest crude consumers. Crude for March delivery was at $97.51 a barrel, down 26 cents, in electronic trading on the New York Mercantile Exchange at 1:23 p.m. Singapore time.

Interest rates
NIBOR (%)                      LIBOR (%)

O/N               11.9167          USD 1 month          0.1992
7 Day             12.2500        USD 2 month          0.2465
30 Day          12.7500         USD 3 month         0.2955
60 Day          13.0417          USD 4 month         0.3471
90 Day          13.3750          USD 6 month         0.4679
USD 12 month        0.7770
Y/Y Consumer Inflation December 2012 :      12.00%
FX Reserves: 31 January 2013 (USD bn)        45.984
MPR                                                                        12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria

                            Hi             Low         Close        Prev.Close
USD/NGN  157.30/40   157.10/20  157.30/40   157.10/20

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