A Review of the Nigerian Energy Industry

Financial market update

15 March 2013, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The (NSE) has unveiled plans to revamp its second-tier market to an Alternative Securities Market (ASM), to enable Small and Medium Enterprises (SMEs) that are emerging to participate and access finance from the Nigerian Capital Market. The new issuers’ portal will not only encourage transparency and accountability but will expedite the discharge of Issuers’ post-listings obligations relating to structured and continuous disclosures.

EUROPE: European stocks advanced to a 4 1/2-year high as the region’s policy makers gathered for a two- day summit in Brussels and U.S. jobless-benefit claims fell to the lowest level in almost two months. The Stoxx Europe 600 Index climbed 1.1 percent to 298.52 at the close of trading, the highest level since June 2008.

INDIA: Indian stocks retreated for the fourth day this week, led by lenders and carmakers. A gauge of volatility climbed to more than a four-month high. The S&P BSE Sensex lost 0.5 percent to 19,469.32 at 12:13 p.m. in Mumbai, extending the weekly loss to 1.1 percent. India’s non-food inflation eased last month even as the benchmark gauge accelerated from a three-year low, government data showed yesterday, sustaining scope for the Reserve Bank of India to reduce rates on March 19.

CHINA: China’s stocks rose, paring the benchmark index’s losses this week, after valuations dropped to the lowest level in three months. A gauge of volatility jumped to a 10-month high. The Shanghai Composite Index climbed 0.3 percent to 2,276.88 at 2:47 p.m., after rising as much as 1.8 percent and falling as much as 0.9 percent.

Bonds – Continued volatility in the markets yet again on Thursday, market is trading the Apr 17s about 25bps higher than Wednesday’s cut off as well as the Jan 22s 18bps higher than the auction cut off levels. Panic setting into the market as onshore players long bonds look to de-risk as the naira shows signs of weakness.

Bills – OMO auction on Thursday was cancelled due to technical issues and this fed some demand back into the secondary market yesterday. Expectation is that the CBN comes back again today to try and mop up some of the liquidity in the money market.

Money Market – OBB and unsecured O/N stable at 10.15% and 10.25% on Thursday as the market remains very liquid opening up N436billion yesterday.

Indicative Currency Exchange Rates
                               Bid                Offer
EURUSD             1.3033             1.3043
GBPUSD              1.5140             1.5150
USDJPY               96.04               96.44
USDCHF              0.9449            0.9469
GBPEUR              1.1615               1.1625
USDZAR              9.1563              9.2563
USDNGN             158.95              159.70
JPYNGN              1.6550              1.7050
CHFNGN            168.22              172.22
EURNGN            207.16              211.16
GBPNGN             240.65            244.65
ZARNGN             17.36               19.36

Interest rates
NIBOR (%)                         LIBOR (%)

O/N               10.3750            USD 1 month             0.2032
7 Day             10.6667            USD 2 month            0.2415
30 Day          11.0833            USD 3 month             0.2801
60 Day          11.3750            USD 4 month              0.3311
90 Day          11.6667             USD 6 month             0.4449
USD 12 month            0.7290
Y/Y Consumer Inflation January 2013 :                 9.00%
FX Reserves: 12 March 2013 (USD bn)                  48.173
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  159.80/90    158.78/88   159.40/50   158.45/55

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