Dear Afrinvestor,

Please find below our Weekly Update for the week ended 7^th September, 2012.

Key Highlights: -

Macroeconomic /Socio-Political Update

·         In a bid to ensure the Federal Government meets its set deadline for the ongoing power sector reform, the President reconstituted the Presidential Action Committee on Power (FACP) and Presidential Task Force on Power (PTFP).

·         Flour Mills Nigeria Plc, Bagco and Bagco North have notified the Nigerian Stock Exchange of a proposed merger between the three entities to form one, with Flour Mills Nigeria Plc being the handled  entity.

Equity Market Review & Outlook

·         Globally, Equities turned in impressive performances last week.      

·         The Nigerian All-Share Index closed on a positive note last week, continuing on the rally from the previous week.

Money Market Review & Outlook

·         Interbank rates closed north last week as liquidity outflows exceeded the inflows of funds.

·         We expect rates at the money market to close north from current levels this week.

Foreign Exchange Market Review & Outlook

·         The CBN offered a total of US$400.0m at the WDAS last week. The Naira for the third week registered no change at both auctions closing at N155.80/US$1.00, thus, no week-on-week change.

·         We  expect the interbank and parallel markets to hover around current levels this week. 

Bond Market Review & Outlook

·         Sentiments were predominantly bullish in the bond market last week, with an upward review in prices of most traded instruments excluding the 15.10% FGN April 2017.

·         We expect sentiments will remain skewed to the bulls, in the domestic bond market this week.