A Review of the Nigerian Energy Industry

Financial market update

Financial-market16 August 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
US: The Bloomberg U.S. Dollar Index was up 0.1 percent and has gained 0.4 percent since August 9 on signs of an improvement in the U.S. economy.

EUROPE: European stocks fell after the Stoxx Europe 600 Index dropped the most in more than five weeks yesterday, as investors await reports on the U.S. housing market.

CHINA: China’s stock market was roiled by a 53 percent surge in trading volumes that sent the Shanghai Composite Index to its biggest intraday gain since March 2009.

BONDS: Volatile day yesterday post bond auction, yields initially dipped in the opening hour however market sold to close the day with yields closing higher than the open. The selloff to close came as some market participants feared some measures by the CBN to squeeze liquidity in order to protect the USDNGN coming soon.

BILLS: A slowdown in the bullish trend in the bill market, rates still traded downward yesterday and averaged 10bps. Unless there is an increase in supply through OMOs or the CBN comes out to further squeeze liquidity, we are unlikely to see any retracement in bill rates short term.

MONEY MARKET: OBB and unsecured O/N rates averaging 14.00%, the market was short, liquidity opening down N13billion yesterday.

Indicative Currency Exchange Rates
                         Bid       Offer
EURUSD       1.3338    1.3388
GBPUSD        1.5629    1.5679
USDJPY         97.48      97.88
USDCHF        0.9264   0.9294
GBPEUR        1.1718     1.1728
USDZAR        9.9781    10.1281
USDNGN      160.80    161.55
JPYNGN       1.6496     1.6996
CHFNGN      173.58     177.58
EURNGN     214.48     218.48
GBPNGN      251.31     255.31
ZARNGN       16.12      18.12

WTI traded near the highest price in two weeks as an escalating conflict in Egypt fanned concern that oil shipments through the country may be disrupted. WTI for September delivery was at $107.32 a barrel in electronic trading on the New York Mercantile Exchange, down 1 cent. The volume of all futures traded was 27 percent below the 100-day average.

Interest rates
NIBOR (%)                       LIBOR (%)

O/N              18.0417           USD 1 month        0.1841
7 Day            18.0417           USD 2 month       0.2262
30 Day         18.2917           USD 3 month       0.2632
60 Day         18.5833          USD 6 month       0.3945
90 Day        18.8167            USD 12 month     0.6776
Y/Y Consumer Inflation June 2013 :      8.4%
FX Reserves: 17 July 2013 (USD bn)   46.923
MPR                                                            12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

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