Dear Afrinvestor,

Please find below our Weekly Update for the week ended 24^th August, 2012.

Key Highlights: -

Macroeconomic /Socio-Political Update

·         Shoprite has announced plans to spend US$205million on property development in Nigeria.

·         The CBN is to review the existing currency structure in the economy.

Equity Market Review & Outlook

·         Global equities were bullish on Friday mainly due to the news that the US Federal Reserves will likely ease monetary policy on the basis of slow economic recovery, and the Chinese Government is likely to follow suit as there are indications that manufacturing activities reduced further in August.

·         In Nigeria, the NSE All-Share Index went up by 1.1% w-o-w and 12.9% YTD (Year-To-Date).

Money Market Review & Outlook

·         Interbank rates dipped last week in comparison to the previous weeks rate.

·         We expect money market rates to hover around current levels this week.

Foreign Exchange Market Review & Outlook

·         The CBN offered a total of US$120.0m at the WDAS last week. The Naira remained unchanged at N155.80/US$1.00.

·         We expect that the Naira to trade at current level this week, with a possible appreciation due to dollar inflows from oil companies at the end of the month.

Bond Market Review & Outlook

·         Bullish trading prevailed in the bond market last week, with an increase in the price of all traded instruments excluding the 15.10% FGN April 2017.

·         We expect bullish sentiments to continue in the domestic bond market this week.