Please find below our Weekly Update for the week ended 6th July, 2012.
Key Highlights: -
Macroeconomic /Socio-Political Update
· The Federal Government in its bid to stop the importation of refined crude oil into the country, achieved a significant milestone with the signing of an MOU with Petroleum Refineries and strategic Research (PRSR) Limited to establish six modular refineries in the coastal area of Nigeria, at a cost of US$4.5b.
· Tiger Brands (a South African food company) has reached an agreement in principle, to acquire a 63.4% in Dangote flour, from the Dangote Group.
Equity Market Review & Outlook
· Globally, equities exhibited modest performances last week.
· The Nigerian All-Share index continued on a bullish note last week despite opening the week with a loss on the first trading day.
Money Market Review & Outlook
· There was a dearth of liquidity in the money market last week, with all market rates closing at least 300bps north of the benchmark interest rate.
· We expect money market rates to remain at current levels this week.
Foreign Exchange Market Review & Outlook
· The CBN offered US$650.0m but sold US$601.1m at the WDAS last week. The Naira closed flat at N155.94/US$1.00 on Monday, while it gained 4k to the Dollar on Wednesday to close at N155.90/US$1.00.
· We expect the Naira to strengthen further this week, in view of increased FDI inflows.
Bond Market Review & Outlook
· The bond market was bullish last week with instruments inching up in price, as their respective yields dipped.
· We expect mixed sentiments in the market this week.
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