Dear Afrinvestor,

Please find below our Weekly Update for the week ended 27^th July, 2012.

Key Highlights: -

Macroeconomic /Socio-Political Update

·         The Federal Government through the Bureau of Public Enterprises (BPE), signed a 3 year contract worth US$23.0Million with Manitoba Hydro International (MHI) of Canada for the management of the Transmission Company of Nigeria (TCN).

·         UBA is seeking approval from the Zambian central bank to convert its Zambian operations into a local bank.  

Equity Market Review & Outlook

·         Global stocks were upbeat on Friday following expectations that the US Federal Reserves and European Central Bank (ECB) will  provide stimulus packages for struggling economies.

·         Despite recording losses for three days, the Nigerian All-Share Index closed on a bullish note, recording gains of 0.9% week-on-week and 12.4% year-to-date.

Money Market Review & Outlook

·         The money market closed in a liquid position last week due to FAAC credits in excess of N260.0bn; interbank rates subsequently slumped across board despite the upward adjustment in the cash reserve ratio (CRR) by the CBN.

We expect money market rates to inch up moderately this week