Author: Julius Alagbe

Oil Prices Retreat Amidst U.S. Shutdown Countdown Oil prices fell slightly on Tuesday as investors weighed the prospect of more OPEC+ supply, jitters over US budget talks, and a new US proposal aimed at resolving the Gaza conflict. Political dysfunction in Washington is threatening to plunge the United States into another government shutdown – with far-reaching consequences for more than two million federal employees across the country. In the absent of a funding deal between the political parties in Congress, the United States heads toward a shutdown on Wednesday with incalculable consequences for the American economy. The current annual federal…

Reserve Bank of Australia Keeps Cash Rate at 3.6% The Reserve Bank of Australia (RBA) held the cash rate steady at 3.6%, aligning with both market consensus and our expectations – with a tone that has become less dovish. The bank rate decision reflects a more cautious stance in light of the recent uptick in headline consumer price index (CPI) inflation, which is now approaching the upper bound of the RBA’s 2–3% target range. Whether the August CPI spike to 3% year-on-year is a temporary blip or indicative of deeper, emerging inflationary pressures remains uncertain, ING analysts said in a…

GCR Affirms Lafarge Africa’s AA+, A1+ Credit Ratings, Outlook Stable GCR Ratings (GCR) has affirmed Lafarge Africa Plc’s national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG), respectively. The African focused ratings agency also stated that the outlook on the rating is accorded as stable. The ratings affirmation is supported by Lafarge Africa Plc’s strong financial profile underpinned by robust cash generation that has resulted in sustained sizable cash holdings, GCR said. It also reflects the group’s net ungeared position over the review period. Ratings analysts note the improvements to capacity utilisation rate, but intense competitive pressures have…

Yields Squeeze as Nigerian Treasury Bills Rally on Month-End Buying Nigerian Treasury bills rally in the secondary market on month-end buying fuelled by switching sentiment. Investors stepped up buying activities ahead of fourth quarter primary market auction and expectations that the recent interest rate cut will affect spot rate pricing. Since inflation began to recede, the average return on Nigerian Treasury bills has been fluctuating to reflect the current market conditions. Liquidity level in the financial system has supported the rally. In the absence of funding pressures in the money market, banks have stayed glued to their holdings. On Monday,…

Oando Slides by 6.12% on Fresh Selloff Oando Plc opened the week on a negative note with selloffs that plunged its share price to N46, down by 6.12% on the day from N49. The latest price is 48.69% below its highest value in 52 weeks. Oando Plc has reached N89.65 per share before the energy stock retreated due to investors that liquidated their positions. Oando share price fell to N46 as 5.504 million units valued at N248.472 million traded in the local bourse on Monday. The energy company still has strong fundamentals, but investors’ sentiment remains downbeat. The market now…

NLC Orders Affiliates to Mobilise for Action Against Dangote Group The Nigeria Labour Congress (NLC) has directed all its affiliate unions to immediately commence mobilisation and preparations for industrial action against the Dangote Group. This directive is contained in an internal memo signed by NLC President, Mr Joe Ajaero, on Monday in Abuja. The order follows a dispute between Dangote Refinery and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the alleged sack of over 800 workers. Ajaero said the directive was prompted by what the congress described as the Dangote Group’s “anti-worker crusade” against Nigerian workers.…

PENGASSAN-Dangote Dispute Reduced Power Generation by 1100MW -NISO The Nigerian Independent System Operator (NISO) says industrial action within the gas supply chain resulted in reduction in power generation by more than 1,100MW on Sept 28. According to NISO’s management in a statement in Abuja on Tuesday, available generation in the National Grid fell sharply from over 4,300MW in the early hours of Sept. 28, to about 3,200MW at the lowest point. “NISO wishes to notify the public of recent major generation shortfalls on the National Grid, caused by industrial actions of the Petroleum and Natural Gas Senior Staff Association of…

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…