A Review of the Nigerian Energy Industry

Financial market update

Financial markets02 September 2013, Sweetcrude, Lagos – Local and international financial markets products and services update.
NIGERIA: Nigeria’s external reserves continued its lacklustre performance this quarter as it fell to $46.871billion on Wednesday. This also coming as the naira weakened to its lowest value against the dollar this year in the interbank markets touching 163.90 today but falling intraday to close at 162.07. [THISDAY]

US: US Stocks closed a mostly downcast week on a sour note Friday following fresh indications the Obama administration plans military action against Syria.

EUROPE: Economic confidence in the euro area soared to a two-year high in August as the currency bloc’s recovery gathered pace after it exited a record-long recession.

CHINA: China’s economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded.

BONDS: Yields up about 4bps on average, a quiet day with only a handful of trades going through.

BILLS: The CBN came out to offer N100billion in OMO bills on Friday and this immediately caused a selloff in market. The CBN had not come out to offer OMO bills in the last six weeks and with the liquidity in the system, market had bought bills quite aggressively in the last few days. Rates traded up about 35bps on Friday on average and could possibly move some more if the CBN comes out again to offer OMO today.

MONEY MARKET: OBB and unsecured O/N rates trading up to 11.00% on Friday as the CBN came out to mop up some of the liquidity in the system. Market opened up about N357billion on Friday. Now that the CBN is back offering OMO, it is likely they will continue to use this to squeeze liquidity further this week.

WTI crude fell for a third day after President Obama said he’ll seek authorisation from Congress before ordering military action against Syria, easing concern that an imminent strike would disrupt Middle COMMODITIES: East oil exports.WTI for October delivery slid as much as $3.44 to $104.21 a barrel in electronic trading on the New York Mercantile Exchange.

Indicative Currency Exchange Rates
Bid         Offer
EURUSD       1.3219        1.3269
GBPUSD       1.5555        1.5605
USDJPY         98.78        99.18
USDCHF        0.9319     0.9349
GBPEUR        1.1767       1.1777
USDZAR       10.1742    10.3242
USDNGN       163.30    164.05
JPYNGN       1.6532     1.7032
CHFNGN      175.23     179.23
EURNGN      215.87    219.87
GBPNGN      254.01    258.01
ZARNGN       16.05     18.05

Commodities
WTI crude fell for a third day after President Obama said he’ll seek authorisation from Congress before ordering military action against Syria, easing concern that an imminent strike would disrupt Middle East oil exports.WTI for October delivery slid as much as $3.44 to $104.21 a barrel in electronic trading on the New York Mercantile Exchange.

Interest rates
NIBOR (%)                       LIBOR (%)
O/N              11.6667           USD 1 month        0.1820
7 Day            12.0000         USD 2 month        0.2252
30 Day         12.4583          USD 3 month        0.2595
60 Day         12.7500          USD 6 month        0.3930
90 Day         12.1667          USD 12 month       0.6671
Y/Y Consumer Inflation July 2013 :          8.7%
FX Reserves: 27 August 2013 (USD bn) 46.887
MPR                                                                 12.00%
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.

Fx
Hi                   Low            Close       Prev.Close
USD/NGN
      163.80/90     161.89/99    161.97/07       163.60/70

In this article

Join the Conversation