A Review of the Nigerian Energy Industry

Financial market update

Financial-market11 April 2013, Sweetcrude, Lagos – Local and international financial market update.
GERIA:NI The African Development Bank’s investment in Nigeria since it started operations in the country 42 years ago is $3.75 billion, the Bank’s fact sheet obtained from its Country Office in Abuja, has shown. As at January this year, $2.17 billion has been approved for 30 “active and ongoing” operations in the country, the Bank said. From the total portfolio investment, the AfDB’s Resident Representative in Nigeria, Ousmane Dore said $884. 68 million (40.8 per cent) was in the public sector, while $1.28 billion (59.2 per cent) was invested in the private sector. The Bank approved its 2013 – 2017 Nigeria Country Strategic on February 4, and it is anchored on two pillars of creating a sound policy environment and investing in critical infrastructure.

EUROPE: European stocks advanced as a report showed Chinese imports rose more than estimated in March. The Stoxx Europe 600 Index rose 0.4 per cent to 289.11 at 8:10 a.m. in London. The gauge rebounded yesterday as mining shares rallied and Alcoa Inc. began the U.S. earnings season with profit that beat estimates.

INDIA: Indian annual car sales are poised to rebound from the first annual decline in a decade and rise as much as 5 per cent over the next year, according to the Society of Indian Automobile Manufacturers. Annual car sales in the year ended in March fell 6.7 per cent to 1.89 million units, the biggest decline since 2001 as slowing economic growth and high interest rates kept buyers from showrooms, according to Sandilya, president of the auto group.

CHINA: Most Chinese stocks fell, led by health-care companies, after exports rose less than forecast. Five stocks fell for every four that gained on the Shanghai Composite Index, which rose less than 0.1 per cent to 2,226.13 at the close. A government report showed exports grew 10 per cent in March, compared with 21.8 per cent growth in February and the 11.7 per cent median estimate of economists. Import growth exceeded analyst estimates, leaving an unexpected trade deficit.

Bonds – Still relatively quiet markets yesterday, volumes low with market stable on the day. Some demand feeding into the May 18s which traded down about 10bps on the day.

Bills – Rates up about 20bps on average yesterday, trading patchy intraday with not much liquidity. The CBN came out to offer N50billion in 205 day bills but didn’t make any sales.

Money Market – OBB and unsecured O/N rates spiked to 13.00% and 13.50%. Liquidity levels have dropped significantly in the last few days as the central bank has been successful in mopping up the liquidity. T-bill maturity comes Thursday and this should help soften rates.

Indicative Currency Exchange Rates
Bid         Offer

EURUSD           1.3106       1.3116
GBPUSD           1.5336       1.5346
USDJPY             99.33        99.73
USDCHF            0.9305     0.9325
GBPEUR            1.1700      1.1710
USDZAR            8.9317       9.0317
USDNGN            157.15       157.90
JPYNGN             1.5821       1.6321
CHFNGN           168.89       172.89
EURNGN           205.96      209.96
GBPNGN            241.01       245.01
ZARNGN            17.59          19.59

West Texas Intermediate fell from the highest price in almost a week after U.S. crude stockpiles increased to the largest since 1981 and Chinese imports of the commodity dropped. WTI for May delivery slid as much as 44 cents to $93.76 a barrel in
electronic trading on the New York Mercantile Exchange and was at $93.82 at 3:01 p.m. Singapore time.

Interest rates
NIBOR (%)                     LIBOR (%)

O/N              13.7917          USD 1 month         0.1993
7 Day            14.0000        USD 2 month         0.2403
30 Day         14.2000         USD 3 month        0.2781
60 Day         14.4167          USD 4 month         0.3251
90 Day         14.6250          USD 6 month        0.4419
USD 12 month      0.7210
Y/Y Consumer Inflation February 2013 :       9.5%
FX Reserves: 28 March 2013 (USD bn)         48.573
MPR                                                                       12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Hi              Low            Close      Prev.Close
157.70/80   157.55/65    157.65/75    157.60/70

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