EUR 120.10 For Business Accounts Only

Breakfast Report - 25th April 2016

• According to data from the April monthly Oil Market Report (MOMR) of the Organization of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production fell by 67,000 barrels per day (bpd) in March to 1.677 mbpd, making Angola the top oil producing nation in Africa for the second time in four months. We are quick to attribute some of the slowdown in production to the shutdown of the Shell operated Forcados terminal (exports 400,000 bpd) which occurred on February 14th following subsea leakages. Furthermore, the Nigerian Agip Oil Company (NAOC) has also shut down oil production in its Brass River facility following a fire incident on one of its major pipelines. This fall in oil production raises concern about government revenue in the coming months. Nigeria’s three tiers of government shared a total of N300 billion in March, the lowest in five years.

• Starting Tuesday, the NSE ASI put up a 3 session rally amidst mostly encouraging corporate earnings and relatively stable oil prices. Renewed investor confidence for Financials (+304bps w/w) and an eventual rebound in the Consumer Goods sector pushed the NSE ASI 53bps higher w/w, putting ytd return at -13.24%. We note however that the Industrial Goods sector traded quietly week long, recording a modest +4bps weekly change.