AFRINVEST WEST AFRICA LIMITED

Dear Afrinvestor,

Please find below our Weekly Update for the week ended 1^st June, 2012.

Key Highlights: -

Macroeconomic /Socio-Political Update

· The Central Bank of Nigeria (CBN), has directed that, starting from the 8th of January, 2013, the National Identity Number, NIN, would be part of the criteria’s for owning and operating a bank account in Nigeria.

Equity Market Review & Outlook

· Globally, equities continued in their bearish state, as European stocks fell to a five-month low, with unemployment rates in the U.S suddenly rising, adding to the frail economic data from china and the European debt crisis hurting Asian exporters.

· The Nigerian equity market also closed on a bearish note for the fourth week in a row, as the market traded in negative territory for the greater part of the week.

Money Market Review & Outlook

· Interbank rates stayed south for most of the week and eventually closed north, as debits for WDAS and OMO auctions eased out the excess liquidity within the money market.

· We expect market rates to linger round current levels, as no significant inflows are envisaged in the market this week.

Foreign Exchange Market Review & Outlook

· The CBN offered and sold US$500.0m 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 on a week-on-week basis.

· We expect Dollar demand pressure to continue this week at the interbank market.

Bond Market Review & Outlook

· The bond market was bearish last week, with most instruments dipping in price, excluding the 15.10% FGN April 2017.

· We expect bearish sentiments to persist in the bond market this week.