Dear
Afrinvestor, Please
find below our Weekly
Update for the
week ended 11th May, 2012.
Key
Highlights: -
Macroeconomic
/Socio-Political Update·
South
Africa's consumer foods maker, Tiger Brands, recently expressed interest in
Dangote Industries’ stake in its flour milling unit.
·
The
National Economic Council (NEC) has approved the increase in energy tariffs in
the country to commence June.
Equity
Market Review & Outlook·
Globally, equities turned in a weak performance. U.S
stocks depreciated, following the biggest weekly decline in 2012, as the
election of the new France president, Francois Hollande, triggered concern
about Europe’s debt crisis.
·
Similarly, the Nigerian equity market shed marginal
points last week, ending a three week rally despite closing on a positive note
on the last trading day.
Money
Market Review & Outlook·
Interbank
rates inched up further last week, as debits for WDAS, OMO and T-bill auctions
ensured the money market closed the week in an illiquid state.
·
We
expect money market rates to hover around current levels this week, with the
possibility of a moderate hike in rates at the end of the week.
Foreign
Exchange Market Review & Outlook
·
The
CBN offered and sold US$270.0m at the WDAS last week. The marginal bid rate at
both auctions was N155.75/US$1.00 with the Naira losing 5k to the Dollar from
its previous close price and on a week-on-week basis
·
We
expect to see improved Dollar supply at the interbank and official markets this
week, with possible appreciation in the Naira at the WDAS.
Bond Market Review & Outlook·
Mixed
sentiments prevailed in the bond market last week, with yields dipping on all
3yr, 5yr, 7yr and 20yr instruments excluding the 5yr 15.10% FGN April 2017. The
Nigerian Eurobond lost 64cents in its price from US$110.34 in the previous week
to US$109.69, as its yield subsequently increased by 8bps from 5.26% to 5.34%.
·
We
however expect a further dip in the Eurobond price on account of a possible
decline in the price of bonny light.
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not hesitate to contact us if you require further information on the contents
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regards,
Investment
Research
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