Monday, 9 July 2012

Dear Afrinvestor,

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. 

     Please click on the image below to view the Afrinvest Weekly Update.


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Kind regards,

Investment Research

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