A Review of the Nigerian Energy Industry

Financial market update

finance27 December 2013, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: The Asset Management Corporation of Nigeria, AMCON, will on December 30 redeem the N1 trillion series one, two, three and four bonds held by institutions outside the Central Bank of Nigeria (CBN). CBN Governor, Lamido Sanusi, confirmed that the amount was already in the apex bank’s possession. Sanusi said an additional N1 trillion would be provided by the corporation by October next year to redeem the series five bonds. He said the objective was to ensure that the CBN remained the only creditor to AMCON.

BONDS: No trading on Tuesday as the market winds down for year end.

BILLS: No trading on Tuesday as the market winds down for year end.

MONEY MARKET: OBB and ON rates increased to 10.75 and 11% respectively.

COMMODITIES: West Texas Intermediate swung between gains and losses after fewer Americans than projected filed for unemployment benefits and before data forecast to show crude inventories fell. WTI for February delivery was at $99.54 a barrel in electronic trading on the New York Mercantile Exchange, down 1 cent. The contract rose 33 cents to $99.55 a barrel yesterday, the highest close since Oct. 18.

US: President Barack Obama signed into law a bipartisan federal budget that will ease $63 billion in spending cuts for the next two years, along with a measure that sets military policy for 2014.The $1.01 trillion spending plan Obama signed yesterday is projected to cut the federal government’s deficit by $23 billion over 10 years. The Pentagon law authorizes a $526.8 billion ceiling for military spending and includes pay raises for troops.

EU: Corporate bond sales slipped from a record pace in 2013 as the slowest year in Europe since 2002 offset unprecedented U.S. issuance stoked by borrowers seeking to get ahead of the Federal Reserve’s stimulus cuts. Sales of $3.78 trillion in 2013 fell 5.5 percent from last year’s $4 trillion, an all-time high, according reports. European debt offerings plummeted 6 percent to 786.2 billion Euros ($1.1 trillion)

CHINA: China’s benchmark money-market rate was set for the biggest weekly drop since 2011 as central bank cash injections and fiscal fund transfers boosted supply. The Yuan rose to the strongest level in 20 years on a record fixing. The seven-day repurchase rate tumbled 252 basis points since Dec. 20, the biggest decline since July 2011, to 5.08 percent in Shanghai, a daily fixing from the National Interbank Funding Centre showed.

Macro Economic Indicators
Inflation rate (yoy) for Nov. 2013              7.9%
Monetary Policy Rate current                     12%
FX Reserves ($) as at Dec. 23                 43.932

Money Market Highlights
O/N                                               11.1250
7 Day                                             11.3333
30 Day                                          11.5833
60 Day                                          11.8333
90 Day                                          12.0833
USD 1 Month                                0.1670
USD 2 Months                              0.2128
USD 3 Months                              0.2469
USD 6 Months                              0.3494
USD 12 Months                            0.5836

Benchmark Yields
Tenor                      Maturity           Yield (%)
91 days                       20-Mar-14             11.68
182 days                     05-Jun-14             11.63
364 days                     04-Dec-14             12.41
2 years                        23-Apr-15              12.71
4 years                        31-Aug-17              12.58
5 years                        30-May-18            12.57

Indicative Currency Exchange Rates
                          Bid         Offer
EURUSD        1.3762       1.3812
GBPUSD        1.6463       1.6513
USDJPY         104.74       105.14
USDCHF        0.8913      0.8943
GBPEUR        1.1519        1.1529
USDZAR        10.318       10.468
USDNGN       159.38       159.68
JPYNGN        1.6238       1.6738
CHFNGN       172.05       176.05
EURNGN       212.18       216.18
GBPNGN       244.41       248.41
ZARNGN        16.19          18.19

                             Hi               Low         Close         Prev.Close
USD/NGN   160.05/15    159.35/45   159.40/50   159.60/70  

In this article

Join the Conversation