Author: Julius Alagbe

Guinness Nigeria Hits 52-Week High as Investors Sentiment Rises Guinness Nigeria Plc’s stock market value increased by about 29% as investors increased their interest in the brewer company in anticipation of a stronger future earnings stream. The company trading in the consumer goods category on the exchange recorded a successive price uptick that started on Tuesday and closed on Friday, reflecting investors’ positive sentiment. According to data from the Nigerian Exchange (NGX), Guinness Nigeria Plc’s share price rose to N183.90 on Friday, driven by higher buy volume. The latest share price level marks its highest value in 52 weeks versus…

Interest Rate: CBN Anticipates to Prioritise Growth with 50bps Cut Analysts anticipate that the Central Bank of Nigeria (CBN) will prioritise economic growth over price stability with a 50 basis point reduction in benchmark interest as the monetary policy committee (MPC) is scheduled to meet this week. Consensus on rates direction is mixed, with deliberations taking place in an environment of easing inflation, a firmer Naira, and a shifting global policy landscape where the U.S. Inflation is declining, and the naira has maintained an uptrend against the US dollar due to foreign investors’ confidence in the economy and financial market.…

FGN Bonds Yield Slides to 16.59% as Investors Boost Holdings The average yield on Federal Government of Nigeria (FGN) bonds fell to 16.59% in the secondary market as investors anticipate higher supply for September. The monthly auction for September will be held in the coming days, and analysts believe the Central Bank of Nigeria (CBN) interest rate decision will influence yield directions. Trading in the fixed income market was marginally bullish this week, with most activity concentrated at the short- and mid-segments of the curve. Investors continue to build naira portfolios with Nigerian bonds across short, mid and long duration…

Equity Investors Gain N822bn, Looming Q3 Earnings Present Upside Equity investors gained N822 billion, and stockbrokers are anticipating a fresh rally in the Nigerian Exchange (NGX) listed companies in anticipation of the third-quarter earnings release. The market capitalisation expanded week on week as a result of renewed interest in stocks with strong fundamentals, though overall trading activity was somewhat muted as weak sentiment in the banking sector weighed on momentum. The NGX All-Share Index advanced by 0.92% week-on-week to close at 141,845.35 points, driven by renewed investor interest in fundamentally sound names. This came against the backdrop of fresh half-year…

Wike Approves FCT Resident Doctors’ Request The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has approved the demands of resident doctors that have been on strike since Sept.15, over unpaid arrears. Wike made this known on Friday while inaugurating the construction of the Northern parkway from Ring Road II to Ring III on Shehu Yar’Adua way in Abuja. He also commended the doctors for calling off the strike in the interest of patients and the territory. “All the files containing the requests on my table have been duly signed. “I must commend the resident doctors for calling off…

GCR Affirms Aradel Holdings AA-, A1+ Ratings with Stable Outlook GCR Ratings, a ratings agency focused on African issuers, has confirmed the national scale long-term and short-term issuer ratings for Aradel Holdings Plc at AA-(NG) and A1+(NG), respectively. According to the rating note, the African-focused ratings agency also affirmed the national scale long-term issue rating of AA-(NG) accorded to Aradel Holdings Plc’s N10.318 billion Series 1 Senior Unsecured Bonds. The outlook on the ratings is accorded as stable, while GCR said its ratings affirmation reflects Aradel Holdings Plc’s consistent earnings growth and sound cash generation, which have supported a very…

2025 Budget: NASS Seeks Withdrawal of Contracts Circulars The National Assembly has called for the withdrawal of all circulars already issued for contract awards in the 2025 fiscal year. The resolution for withdrawal of circulars already issued for contract awards for the 2025 fiscal year by the Executive was jointly taken by committees on Appropriations of both the Senate and the House of Representatives in Abuja. The parliament strongly indicated that the N23.9 trillion capital component of the entire N54.99 trillion 2025 budget will extend to 2026 fiscal year. The joint resolution was sequel to the earlier one taken by…

Investors Step Up Treasury Bills Hunting after CBN Rejects Bids Investors stepped up hunting for Nigerian Treasury bills in the secondary market amidst recent spot rate cuts at the Central Bank of Nigeria (CBN) primary market auction – where N1.25 trillion in excess bids were rejected. The CBN slashed spot rates across the standard tenors -91, 182 and 364-day bills as real return on investors surged to 7.38% post disinflation. Demand for local treasury papers increased as the authority rejected N1.25 trillion of the aggregate subscription of about N1.6 trillion at the midweek auction. Hence, trading activities at the Treasury…

Short-Term Rates Mix as Cross-Currency Swap Tightens Liquidity Interbank rates closed on a mixed note as financial system liquidity continues to fluctuate. The open repo rate held firm, but the overnight lending rate inched higher as a huge outflow related to cross-currency swap repayment on Thursday by the authority tightened liquidity flow in the money market. The short-term benchmark interest rates, however, stood firm even with the liquidity fluctuation; movement was limited due to excess funds in the financial system. The market recorded inflows from FAAC inflows even with treasury bills auction. Still, Banks continue to place funds with the…

Naira Falls as FX Demand Spikes, External Reserves Near $42bn The Nigerian naira experienced increased pressures from the official market due to heightened demand for foreign currency, US dollar in particular. The US dollar volume declined at the Nigerian foreign exchange market, highlighting reduced ability to meet rising demand as the strength of previous inflows eased. FX analysts said the official spot rate was roughened as FX log revealed dollar demand surged after more than $38 million FX intervention last week. Intraday FX spot rate weakened to N1510 on Thursday, while exchange rate traded at lowest point of N1487, data…