Author: Julius Alagbe

Banks Place N5.4trn at Deposit Facility Window at Steep Rate Deposit Money Banks (DMBs) have continued to place excess liquidity with the Central Bank of Nigeria (CBN) standing deposit facility at a rate currently above the return on Nigerian one year Treasury bills. A series of maturing inflows and a primary market auction slowdown have elevated the free liquidity in the banking system, resulting in placements with the authority. Despite the Debt Management Office bond auction, the money market remains flooded with huge liquidity that has kept rate movement in check in the absence of CBN open market operation action.…

Rally: Stock Market Grows by N155 billion to N90.11 Trillion The equities market opened the week on a positive note on Monday, as investors gained N155 billion. Market capitalisation rose from N89.960 trillion on Friday to N90.11 trillion, representing a 0.17 per cent growth. Also, the All-Share Index gained 244.53 points to close at 142,377.56, against 142,133.03 recorded on Friday. The positive performance was driven by sustained interest in stocks like: Skye Shelter Fund, Thomas Wyatt Nigeria, Livingtrust Mortgage Bank, Eterna and 21 other stocks. The market breadth closed negative, in spite of the overall gain, as 36 stocks declined…

Court Bars Pat Utomi, Associates from Establishing “Shadow Govt.” The Federal High Court in Abuja, on Monday, made an order of perpetual injunction restraining Prof. Pat Utomi and and his associates from establishing “a shadow government” in the country. Justice James Omotosho, in a judgment, declared that Utomi’s action was unconstitutional and amounted to creating a parallel government not recognised by the constitution. Justice Omotosho said he had perused the country’s constitution and there was no part that supports the formation of a shadow or parallel government. Citing Section 1(1) and (2) of the 1999 Constitution, the judge said the…

Naira Stays Positive as Investors Liquidate Dollar Positions The Nigerian local currency, the naira, extended its gains against the dollar, appreciating 0.29% to ₦1,476.35 at Nigeria foreign exchange market on Monday. FX rate sustained its rally against the US dollar across the local currency market, reflecting improved sentiment. Demand for the US dollar was subdued amidst export and oil companies’ inflows. To avoid fluctuation risks, MarketForces Africa gathered that some investors with short-term structured dollar assets have begun to wind down positions. Broadstreet analysts hinted that some risk-averse investors that have locked down funds in dollar denominations have started to…

AFC Closes $1.5bn Syndicated Loan, Its Largest-Ever Facility Africa Finance Corporation (AFC), the leading infrastructure solutions provider in Africa, has successfully closed its largest-ever debt facility, a landmark US$1.5 billion syndicated loan. This transaction, a milestone in the Corporation’s history, attracted a diverse consortium of new and returning lenders spanning the Middle East, Africa, Asia and Europe. Originally launched at US$1.3 billion, the three-year facility, proceeds of which will be used for general corporate purposes, attracted strong demand, bringing in new lenders including Bank of Communications, Burgan Bank, Export Development Bank of Egypt, and Hua Nan Bank. This underscores robust…

British Pound Pops Ahead UK Chancellor Reeves Speech Trading on recovery line on Monday, the British pound strengthened to $1.343 ahead of UK Chancellor Rachel Reeves’ Labour conference speech, as investors brace for signals on fiscal strategy before the November 26 budget. Sterling has been underperforming since around the middle of September, ING analyst Chris Turner said in a note on Monday, with plenty of focus on whether the UK is ‘going bust’ or will require an IMF bail-out – neither of which is likely. Turner said at the heart of that story is weak UK growth and parlous public…

Nigerian Bonds Return Reduces Ahead of Reopen Offers Driven by sustained interest in naira assets, the Federal Government of Nigeria (FGN) bonds rallied in the secondary market, and this resulted in higher prices and lower yields. Investors anticipate the Debt Management Office (DMO) will reduce borrowing costs at its monthly auction for September and quickly locked in yield ahead of fresh supply. The sentiment triggered bargain hunting on local assets via secondary market transactions. The Central Bank of Nigeria (CBN) reduced the interest rate benchmark by 50 basis points. Market analysts said the dovish action will trigger lower interest rates…

Nigerian Treasury Bills Rally as Markets React to Rate Cut Nigerian Treasury bill yields declined as investors ramped up naira assets in reaction to the Central Bank decision to cut rates, a move anticipated to result in lower rates on debt instruments. In the secondary market for Treasury bills, strong buying interest persisted across the short, mid, and long ends of the curve, dragging the average market yield down. The bullish momentum came in reaction to the monetary policy committee’s 50 basis point interest rate cut last week.Hence, some market participants, fixed-interest securities investors, quickly locked in yield in anticipation…

Excess Liquidity in Financial System Hits N4trn, Rates Fall Money market rates fell on the back of more than N4 trillion surplus liquidity in the financial system, bolstered by a sequence of inflows in the absence of a primary market auction. Liquidity level increased by N2.352 trillion week on week to close at N4.018 trillion on Friday, data from AIICO Capital Limited review highlighted. Deposit Money Banks (DMBs) actively placed excess funds at the Standing Deposit Facility (SDF) window, with daily balances ranging between ₦1.70 trillion and ₦3.73 trillion, according to AIICO Capital. Banks’ deposit placements peaked towards the latter…

GTCO Delivers 63% YTD Return Ahead of Dividend Payment With a 63.2% year-to-date (YTD) return, GTCO market value declined by N36.45 billion due to a soft bearish touch on the most valuable financial services group in the Nigerian stock market. The price depreciation came ahead of the group’s interim dividend scheduled for payment in October 15, a week after qualification date – for a group with sufficient cash flow. Data from the Nigerian Exchange showed that GTCO share price declined to N93 week on week from N94 at the beginning of trading session. The market saw huge volume transactions that…