A Review of the Nigerian Energy Industry

Financial market update

Financial markets15 July 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: At least 50 foreign investors have indicated interest in investing in Nigeria’s oil- rich Bayelsa State, a senior local official disclosed on Sunday. Ruth Murray-Bruce, the director-general of the Bayelsa State Investment Promotion Agency (BIPA), told reporters in Yenagoa, the state capital, that the investors include those from South Africa, Israel and Britain. She said the potential investors have sent delegations to the state over the past year. The state government has laid foundations for the industrial growth, including infrastructure like roads, electricity and water, the official said.

EUROPE: European stocks climbed, following the biggest weekly advance for the region’s equity benchmark in two months, as Chinese economic growth matched forecasts. U.S. index futures and Asian shares gained. U.K. banks gained after Rightmove Plc said British house prices will increase more than it had forecast.

CHINA: China’s economy grew 7.5 percent in the second quarter from a year earlier, the National Bureau of Statistics said in Beijing today. The median estimate in a Bloomberg News survey of 45 analysts was for a 7.5 percent gain in gross domestic product. The economy expanded 1.7 percent in the second quarter from the previous three months, the bureau said, compared with the median forecast for a 1.8 percent advance in a Bloomberg survey of eight analysts.

INDIA: India’s rupee dropped the most in almost two weeks as a report showed inflation accelerated, limiting the central bank’s scope to ease monetary policy. Wholesale prices rose 4.86 percent in June from a year earlier, compared with a 4.7 percent increase in May, official data showed today.

BONDS: An abrupt end to the rally recorded in the last two sessions, profit taking trades executed to end the week. Bond yield traded 20bps higher on Friday, an active week ahead for the monthly bond auction and June inflation announcement.

BILLS: Bills bought through Friday’s session, nothing offered at the OMO window and can be largely linked to the increased demand for bills, surprisingly bills traded at lower yields compared to accessible levels at the OMO window which clearly would have gone to uninformed investors.

MONEY MARKET: OBB and ON rate close the week at 11.50% and 12.00%, total of NGN157.56 billion issued via OMO bills, NGN 70.20 billion on primary t-bills and USD 600 million sold at the WDAS auction.

COMMODITIES: WTI crude rose a second day on speculation that sustained growth in China will bolster fuel demand in the world’s second-largest oil consumer. WTI for August delivery rose as much as 43 cents to $106.38 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.31 at 2:40 p.m. Singapore time.

Indicative Currency Exchange Rates
Bid              Offer

EURUSD         1.3039            1.3049
GBPUSD         1.5132             1.5142
USDJPY           99.09             99.49
USDCHF         0.9501            0.9521
GBPEUR         1.1605             1.1615
USDZAR          9.8500           9.9500
USDNGN         161.00           161.50
JPYNGN          1.6248           1.6748
CHFNGN         169.46          173.46
EURNGN        209.93           213.93
GBPNGN        243.63           247.63
ZARNGN         16.35              18.35

Interest rates
NIBOR(%)                               LIBOR(%)
O/N                  12.1250               USD 1 month        0.1919
7 Day                12.1667               USD 2 month        0.2330
30 Day             12.5000              USD 3 month        0.2676
60 Day             12.7500              USD 4 month        0.3126
90 Day             13.0000             USD 6 month        0.4020
USD 12 month      0.6856
Y/Y Consumer Inflation April 2013 :                      9.0%
FX Reserves: 02 July 2013 (USD bn)                    47.423
MPR                                                                               12.00%
Source: FMD and CBN

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