Author: Julius Alagbe

Naira Softens in July, External Reserves Rise by $2.15bn The naira softened in July by approximately N4 at the official window, according to the Central Bank of Nigeria (CBN) FX update. The spot FX rate appreciated to N1533.33 per dollar at the Nigerian Foreign Exchange Market (NFEM) in the absence of dollar demand pressures on Thursday from N1534.52 the previous day. Further review of FX update from the CBN showed that the naira touched an intraday high of N1535 compared with N1537 per dollar reached in the previous day. FX rate hit an intraday low of N1533 on Thursday amidst…

Aradel Holdings Grows Profit by 40.2% to N146.4 Billion Aradel Holdings Plc. profit rose by 40.2% year on year to N146.4 billion from N104.4 billion in the equivalent period in 2024, according to details in its unaudited half year results for the period ended 30 June 2025. The strong performance was supported by solid growth in revenue. The company’s unaudited results showed that revenue increased by 37.2% to N368.1 billion in the first half of 2025 from N268.3 billion in the first half of 2024. This was driven by 36.0% increase in export crude oil revenue driven by increased production…

Fixed Income Investors Exit Positions in Nigeria Treasury Bills The average yield on Nigerian government Treasury bills rose as fixed income market investors began to exit positions, reflecting a negative mood in the secondary market. Spot rates have been on the decline, thanks to excess liquidity, disinflation, and buckets of key improvement in other key macro indicators. Hence, analysts are of the view that at a point, the declining yield would trigger capital reversal as foreign investors could be forced to exit positions. On Wednesday, the treasury bills market experienced sell-offs that lifted the yield curve. Investors sold off the…

Euro Declines Sharply after Trade Deal, Dollar Rally The euro extended its decline to $1.14—the lowest level since mid-June—under pressure from a stronger dollar, as traders reacted to the Fed’s latest policy decision after EU and US sealed trade deal. The market continues to react negatively, exiting positions in the euro after EU-US deal put the Eurozone on edge—with negative sentiment from the German Chancellor. The U.S.-EU trade agreement imposes 15 percent tariffs on most European imports, avoiding the 30 percent levies that President Donald Trump had threatened. Critics argue the deal disproportionately favors the United States. The U.S. dollar…

US Fed Keeps Rates Unchanged, Two Voted Against Decision The United States (U.S.) Federal Reserve maintained a decision to keep fed fund rates tight at 4.25 and 4.50% at its recently concluded FOMC meeting on Wednesday. In an official statement, the US Fed said although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. “The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated,” the US central bank said in a statement. The Committee said it seeks to achieve…

Naira Drops Against Dollar, Zero Spread Deletes Speculation The Nigerian naira dropped against the US dollar at the Nigerian Foreign Exchange Market (NFEM) as demand for foreign payments increased marginally. The spread or gap between official and parallel market spot rates reduces to near zero. The Central Bank of Nigeria (CBN) updated spot FX rate on Wednesday showed that the official exchange rate for deals consummated in the currency market was settled at N1534.52 per dollar, from N1533.18 the previous day. The spot fx rate touched an intraday high of N1535.5000 during the day, according to CBN data, reflecting a…

NGX Hits N88trn as Earnings, Interim Dividend Fuel Rally The Nigerian Exchange (NGX) market capitalisation hit a new all-time high of N88 trillion on Wednesday amidst ongoing earnings and the interim dividends festival in the local bourse. Extending its bullish run, the Nigerian bourse All-Share Index (ASI) appreciated by about 100 basis points to close at 139,278.67 points, pushing the year-to-date (YTD) return to 35.32%. This robust performance underscores sustained investor optimism and growing confidence in the resilience of market fundamentals. Investor sentiment remained upbeat, as reflected in the positive market breadth—39 stocks advanced while 32 declined—driven by a blend…

FirstHoldco Profit Plunges as Credit Impairment Charge Spikes FirstHoldco Plc reported a sharp decline in profitability in the first half of 2025 as the financial service company struggled with asset quality with a sharp year-on-year decline in its non-interest income line. Details from its audited financial statement showed that First Holdco, which warehoused Nigeria’s oldest bank, posted more than a 22% year-on-year decline in after-tax profit, N283.77 billion, at the end of the first half of 2025 operation, from N365.30 billion in the comparable period in 2024. At the topline, gross earnings expanded by 16.8% year-on-year to N1.626 trillion from…

NGX Index Rises Sharply on Earnings-Fueled Intraday Rally The Nigerian Exchange (NGX) All Share Index (ASI) has seen significant gain during an intraday rally on Wednesday, with second quarter of 2025 earnings releases fueling bargain hunting. Trading catalysts are increasing from fear of missing out on the monster rally in the equity market plus the strong earnings performance release by Nigerian listed companies. The fact that some companies are recovering from earnings downturns makes their current results quite impressive with huge interim dividend declarations. The market is still waiting for some banking names to start pushing out the financial scorecard,…

US 10-Year Yield Seats at 4.33% Ahead Fed Rate Decision The yield on the 10-year US Treasury note sits at 4.33% on Wednesday following a sharp drop in the previous session, as investors adopted a cautious stance ahead of the Federal Reserve’s policy announcement. Trading activity has been cautious as investors look to rate signals as the Federal Open Market Committee (FOMC) is set to review fund rates. The Federal Reserve is widely expected to keep rates unchanged at 4.25%-4.50%, but market participants are focused on any guidance suggesting a potential rate cut in September. Investors expect Jerome Powell, Fed…