Author: Julius Alagbe

Short-term Interest Rates Shift as Banking Deficit Expands The short-term benchmark interest rates expanded as liquidity condition in the financial system worsened following Nigerian government bonds auction settlement. Due to N271 billion debit for Bond auction, the banking deficit climbed by 54% to N354.51 billion from N56.8 billion the previous day amidst Nigerian Treasury bills auction sales at the primary market. The deficit conditions in the financial system pushed rates higher, with the Overnight Policy Rate (OPR) rising 492bps to 32.42% and the Overnight Rate (O/N) climbing 450bps to 32.83%. The banking system is expected to see N808.73 billion Treasury…

NGX Dips Intraday as Investors Dump Banking Stocks The Nigerian stock market trading negatively during intraday trading session as investors began to exit position in banking stocks. The sell pressure has however remain tight as the Nigerian Exchange All-share index is only down by a basis point, according to trading data obtained. Tier-1 banks were the casualty of investors seeking to take profits. At mid-day, the NGX All Share Index experienced a slight decline of -0.01%, Alpha Morgan Capital Limited told investors in an emailed note. Stockbrokers said ina phone call with MarketForces Africa that banking index is more likely…

DMO Priced Down Rate on Nigerian Bond as Auction Underperforms The Debt Management Office, DMO, priced down interest rate on Nigerian government re-opening local bonds at the primary market auction at the beginning of the week, according to results obtained by MarketForces Africa. At the auction, the DMO offered N300 billion to investors across two maturities 5 and 9-year tenors. The DMO offered 19.30% FGN APR 2029 worth of N200 billion while N100 billion worth of 19.89% FGN MAY 2033 was offered. Authorised market participants at the auction submitted bids worth N530.13 billion across the Apr-29 and Feb-33 maturities. According to…

In the money market, the short term benchmark interest rates declined due to strong inflows that reduce liquidity pressures in the banking system. Hence, the Nigerian Interbank Offered R

Analysts See 37% Upside in MTN Nigeria on New Target Price Investment firm, CardinalStone Securities Limited, has projected 37% upside for MTN Nigeria Plc as analysts revised the telecom company target price to N336.60. Data from the Nigerian Exchange showed that Ticker: MTNN closed at N245 amidst rising block trade and offshore investors interest in the telecom stocks. “We revise our 12-month target price to N336.60 per share, up from N301.49 previously, reflecting a 37.4% potential upside from its current ref price and an unchanged BUY recommendation”, CardinalStone said in an update. The investment firm said its valuation of MTNN…

GCR Places Dangote Cement Plc on Rating Watch Negative GCR Ratings (GCR) has placed Dangote Cement Plc’s national scale long-term and short-term issuer ratings of AA+(NG) and A1+(NG) respectively on Rating Watch Negative. The African markets focused rating agency also placed the national scale long-term issue rating of AA+ (NG) accorded to each of Dangote Cement Plc’s related bonds on Rating Watch Negative. It said the Rating Watch Negative on Dangote Cement Plc and the bonds follow similar rating action on its parent, Dangote Industries Limited, given the sub-group credit analytical approach with a cap to DIL’s ratings. “This is…

UBA Increases Dividend Payment as Profit Grows by 26% The United Bank for Africa (UBA) Plc grew profit by 26.14% year on year to N766.568 billion in 2024 from a total amount of N607.696 billion the group posted in financial year 2023. In its audited report released on the Nigerian Exchange, the pan African banking group performance was supported by significant improvement in revenue amidst high interest rate environment in its key markets. UBA’s net interest income rose sharply to N1.530 trillion, up by 116% year on year from N707.540 billion in the financial year 2023. Net fees and commission…

Crude Oil Prices Surge Supported by Sanctions Risks Oil prices posted a weekly gain, the first time since January, on the back of the latest round of sanctions against Iranian crude exports. In the global commodity market on Monday, Brent has climbed close to $72 while U.S. West Texas hovered around $69 per barrel. The prices of crude oil are well supported as supply-side risks increased following tougher sanctions on Iranian oil exports last week, according to commodities strategists at ING. Brent surged 2.2% while U.S. West Texas Intermediates saw a similar uptrend after a sequence of price declines since…

High Interest Rate to Keep Naira Range Bound – CIO A high interest rate environment is expected to keep the naira within N1450 to N1550 in 2025, according to a prediction made by Erad Partners Limited. Oluwadamilare Oladeji, its Chief Investment Officer (CIO), told MarketForces Africa that the company is guiding an exchange rate that fluctuates around N1500 +/- 10%. “Our initial view would be (1500 +/- 10%); this is based on the premise that local interest rate would remain elevated to retain foreign portfolio investors (FPIs) flows. Elevated yield on fixed interest securities continues to boost foreign portfolio investors’…

CBN to Open N700bn Treasury Bills for Subscription The Central Bank of Nigeria (CBN) is set to open Treasury bills worth N700 billion to investors for subscriptions at the primary market auction scheduled for Wednesday The total bills that will be offered to investors’ midweek is expected to be distribute across standard maturities of 91 days, 182 days, and 364 days, according to a financial market notice. Specifically, the CBN will offer 91-day bills worth N80 billion, 182-day bills worth N120 billion, and N500 billion, respectively. The last two auction sales saw an increase in spot rates across standard maturities.…