Dear Afrinvestor,

Please find below our Weekly Update for the week ended 13^th July, 2012.

Key Highlights: -

Macroeconomic /Socio-Political Update

·         Stanbic IBTC has announced that it will hold a court ordered meeting of its shareholders, in order to seek approval, to transform into a holding company.

·         The Federal Government has approved a 65% levy on the importation of wheat, in addition to the 35% duty the commodity currently attracts.

Equity Market Review & Outlook

·         Equities recorded mixed performances globally.

·         The equity market maintained its upward trend last week as activities ended on a positive note.

Money Market Review & Outlook

·         The money market was illiquid for most of last week, until inflows from a T-bill maturity of over N150.0bn moderated the pressure on interest rates.

·          We expect money market rates to inch back up this week, barring any unforeseen liquidity inflow.

Foreign Exchange Market Review & Outlook

·         The CBN offered  a total of US$380.0m but sold US$343.5m at the WDAS auctions last week.

·         We expect the Naira to continue to strengthen this week.

Bond Market Review & Outlook

·         There were mixed sentiments in the bond market last week, as all short tenured instruments excluding the 5yr (4.00% FGN APR 2015) dipped in price, while bullish sentiments prevailed on all 20yr FGN bonds.

·         We expect mixed sentiments to continue in the market this week.