Author: Julius Alagbe

Central Bank Defends Naira with $360m in 5-Day The exchange rate stabilised in the FX market as the Central Bank of Nigeria, CBN, defended the local currency with $360 million, stemming a negative tide from increased demand for the US dollar. For most part of the week, the naira experienced heightened volatility due to an FX liquidity shortage in the official window, brought forward from the previous week.  This caused the exchange rate to wobble against the US dollar, but late picked up as inflows into the market improved. On Friday, the naira rebounded against the dominant foreign currency, the…

Money Market Rates Soar as Banking Deficit Expands Money market rates remained elevated, reflecting tight liquidity condition in the financial system. The short-term interest rates benchmark advanced sharply over active demand for funds by local banks. The surge in banking deficit kept rate above 32% in the absence of significant inflows. Funding pressure started with Nigerian Treasury bills auction settlement, and earlier last week, the Central Bank sterilised huge amount relating to its pending cash reserves activity. Pattern revealed that the short term benchmark interest rates remained elevated for most part of the week despite inflows from FGN coupon payment. The…

Oil prices increased week on week amidst uncertainties, and the US brokered peace talks between Russia and Ukraine with the OPEC gradual crude output surge.

GTCO Recovers after Investors Price Block Trade GTCO climbs slightly in the equities segment of the Nigerian Exchange after the financial giant was priced at N61 in a 13 million block trade on Thursday. At the close of trading session, its market price declined to N60.5, and during the intraday session, its market price has recovered. Data from the Nigerian Exchange showed that financial services company’s share price has inched higher to N61 after it slumped in the previous day. A total of 26,685,418 shares of GTCO were traded in the local bourse with price slipping to N60.5 from N61.6.…

US Recession Looms for First Half of 2025 – CEO US recession is now expected in the first half of 2025, setting the stage for the most significant economic disruption since the global financial crisis of 2008, a stark warning from Nigel Green, the CEO of global financial advisory and asset management organization, deVere Group. In a note sent to MarketForces Africa, Green noted that mounting pressures across key economic indicators are converging, making this downturn increasingly inevitable. Investors need to prepare now, as the fallout will create both winners and losers across global markets. “The cracks in the US…

Nigeria Bonds Yield Clears at 18.40% Ahead of Inflation The average yield on Nigerian Government bonds settled at 18.40% ahead of inflation data for February. The next inflation figure is due for release by the statistics office in the coming days, and the market expects the consumer price index to cool off further from 24.48% after rebasing exercise. On Thursday, the market posted thin transaction as traders remain cautious, saying falling yield could cause investors to exit positions in a fast and furious manners. Most of the fixed income market players focused their attention on the Treasury bills market, particularly…

The Nigerian Exchange, NGX, market capitalisation soared after sell pressures with investors recording about N82 billion in capital appreciation. ON Thursday, equities market rebounded, halting a two-day losing streak, with 0.12% surge in key market performance indicators.  The positive sentiment was fueled by bargain hunting in some recently depreciated medium and small-cap stocks.

Africa Finance Corp. Lists Bonds on London Stock Exchange Africa Finance Corporation (AFC) closed the London Markets in recognition of its first listing on the London Stock Exchange, continued success in global debt markets, and pivotal role in driving Africa’s economic transformation, the exchange said in a statement. AFC’s return to the international bond market is marked by two milestone transactions—an oversubscribed US$500 million 144A/Reg S Senior Unsecured 5-year Eurobond and its inaugural US$500 million perpetual hybrid bond. With a 145% increase in volume of issuance out of the continent on the London Stock Exchange over the last 3 years…

$650m Notes: Moody’s Affirms Seplat’s Caa1 Corporate Family Rating Moody’s Ratings has affirmed the Caa1 long-term corporate family rating (CFR) and Caa1-PD probability of default rating (PDR) of Seplat Energy Plc. In a rating note, the global rating agency said concurrently, its analysts have affirmed the Caa1 rating on its $650 million senior unsecured bond maturing in April 2026, saying the outlook remains positive. Moody’s said its rating action reflects Seplat’s recently announced senior unsecured notes issuance to refinance its existing $650 million senior unsecured notes due in April 2026. Seplat’s $350 million fully drawn revolving credit facility (RCF) maturing…

Euro, Sterling Rise as US Dollar Embeds Negatives Euro and British Sterling rose as the US dollar continues to lose steam among majors in the forex markets.  The US dollar fell against its major trading partners Tuesday, except for a gain versus the yen. The greenback has suffered from President Donald Trump’s protectionism stance with tariffs threats against other bellwether economies, a development that has triggered concerns for recession as economic numbers wobble. Market analysts attribute this shift to concerns over US economic stability, as Trump’s tariff policies on Canada, Mexico, China, and the EU fuel fears of an economic…