A Review of the Nigerian Energy Industry

Financial market update

finance24 December 2013, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The Federal Government may have generated a total of N2.3 trillion as the end of the second quarter of 2013. A report available to the media indicates that total federally-collected revenue for the period stood at N2.371 trillion. The amount represents a decline of 2.3 per cent, 5.2 per cent and 16.4 per cent below the levels in the preceding quarter, the corresponding quarter of 2012 and the proportionate budget estimate, respectively.

FX: With RDAS auctions closed till next year, the buying trend in the interbank market continued yesterday with the pair opening to a bullish run, and it took the second CBN intervention in one week to keep rates from trading 160 levels. Market traded a range of about 85 points, reaching a high of 159.85/95 before CBN intervened to crash rates to the day’s low of 158.70/80 but the bulls pushed rates back up to close at 159.60/70, about 30 points above Friday’s close.

FIXED INCOME: Secondary market trading remained quiet on Monday as traders shied away from the market, likely to stay this way till the New Year. Perhaps the last significant event of the year is the AMCON bonds amounting to NGN 1 Trillion maturing into the system next week. The redemption is expected to be in treasury bills (80%) and cash (20%). The specific details of the redemption; bill maturities issued and actions of recipients may set the path for yields at start next year.

MONEY MARKET: OBB rate remained at 10.50 while ON rates increased to 10.75%.

COMMODITIES: West Texas Intermediate crude fell for a second day, trimming its first monthly advance since August, amid speculation that recent price increases may be unsustainable. WTI for February delivery declined as much as 38 cents to $98.53 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.77 at 4 p.m. Singapore time.

EU: European stocks were little changed amid shortened trading hours for Christmas Eve and before reports on U.S. durable-goods orders and new house sales. The Stoxx Europe 600 Index advanced 0.1 percent to 323.77 at 8:12 a.m. in London.

CHINA: China’s stocks rose for a second day, led by technology shares and Guangdong province-based companies. The Shanghai Composite Index rose 0.2 percent to 2,092.91 at the close yesterday.

India: India’s rupee rose for a third day on speculation inflows to the nation’s stock market will outpace dollar purchases by local importers. The rupee rose 0.2 percent to 61.8450 per dollar as of 10:04 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg.

Macro Economic Indicators
Inflation rate (yoy) for Nov. 2013          7.9%
Monetary Policy Rate current                 12%
FX Reserves ($) as at Dec. 19                 44.051

Money Market Highlights

O/N                       11.1250                    10.7917
7 Day                     11.3333                    11.0000
30 Day                  11.5833                    11.5417
60 Day                  11.8333                    11.8333
90 Day                  12.0833                   12.0833
USD 1 Month        0.1646                     0.1640
USD 2 Months      0.2128                     0.2153
USD 3 Months      0.2459                     0.2484
USD 6 Months      0.3494                     0.3504
USD 12 Months    0.5836                     0.5841

Benchmark Yields
Tenor                   Maturity             Yield

91 days                   20-Mar-14              12.18
182 days                 05-Jun-14              12.13
364 days                04-Dec-14               12.91
2 years                    23-Apr-15               13.21
4 years                    31-Aug-17               13.08
5 years                    30-May-18              13.07

Indicative Currency Exchange Rates
Bid                     Offer

EURUSD             1.3675                    1.3685
GBPUSD             1.6325                    1.6335
USDJPY              104.24                    104.64
USDCHF             0.8959                   0.8979
GBPEUR             1.1937                    1.1947
USDZAR             10.3505                10.4505
USDNGN            159.59                   160.34
JPYNGN             1.5310                    1.5810
CHFNGN            178.13                    182.13
EURNGN            218.24                   222.24
GBPNGN            260.53                   264.53
ZARNGN             15.42                      17.42

                               Hi             Low           Close        Prev.Close
USD/NGN     159.85/95   158.70/80   159.60/70   158.28/38

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