Author: Julius Alagbe

Liquidity Deficit Keeps Money Market Rates Elevated A liquidity deficit in the banking system kept money market rates elevated in the absence of significant inflows from maturing instruments. The Apex bank’s significant funding mop-up via its recent past open market operations and Treasury bill activity reduced the amount of free funds in the system. Though there were no primary market activities last week, the liquidity positions in the money market failed to improve in the absence of related inflows from other sources, and the resource allocation mechanism caused rates to inch higher to double-digit highs. Banks have continued to access…

Equity Investors Gain N65bn as Nigerian Exchange Rebounds Equity investors gained about N65 billion as the Nigerian Exchange (NGX) all-share index advanced by seven basis points, reversing negative performance experienced last week. The market index, year-to-date return, and market capitalization surged due to positive price movement recorded in the local bourse on Monday.  AIICO, DANGSUGAR, UNILEVER, WEMABANK, and 39 others drove the stock market rally. The Nigerian Exchange index climbed by 94.27 basis points, up by 0.07%, to close at 144,722.47 basis points. Market activities were mixed, as the total volume of all trades consummated on the exchange decreased by…

CBN to Open Nigerian Treasury Bills Worth N230bn for Subscription The Central Bank of Nigeria (CBN) has been scheduled to open Nigerian Treasury bills worth N230 billion for investors’ subscriptions at the primary market auction on Wednesday. On behalf of the monetary authority, the Debt Management Office (DMO) will offer treasury bills across standard tenors—91-day, 182-day, and one-year papers for subscriptions. The authority has been slashing spot rates as key macro indicators improved in addition to sufficient liquidity levels in the financial system. Some traders in local banks told MarketForces Africa that they expect spot rates on naira assets to…

Airtel Africa: Analysts Raise Target Price, See 70% Upside Equity analysts updated estimates on Airtel Africa Plc signal that investors are open to 70% upside potential for holding the telecommunication company stock at the current price of N2310.50. In an equity note, analysts at Cordros Securities Limited updated target price (TP) to N3,930.47 per share for a telecom stock trading between 52-week high of N2,372.50 and 52-week low of N2,156.90. Data from the Nigerian Exchange (NGX) showed that Airtel Africa share price has remained unchanged at N2310.50 even after the telecom bumper Q1 earnings harvest. Airtel Africa Plc.’s 3.758 billion…

Debt Office Increases Bonds Offer for August by 100% In Nigeria, though, the Debt Management Office (DMO) has increased the local bond offering size for August by 100%, reversing the extremely tight supply in the recent past. In a circular, the DMO announced its monthly auction for August will be held on August 25 amidst downward yield movement in the secondary market, reflecting sustained appetite for the naira assets. Local bond supply had been tightened as the authority seeks to diversify borrowing sources and reduce government costs of borrowings. The lower bond supply via primary market auction sales has forced…

PenCom Proposes 20% Pension Contribution for Police Officers The National Pension Commission (PenCom) has urged the Federal Government to increase its pension contribution for police officers from 10% to 20% and raise their monthly pensions to 75% of their final salary before retirement. This call was made by PenCom’s Director-General, Ms. Omolola Oloworaran, during a visit to the Inspector-General of Police, Kayode Egbetokun, at Force Headquarters in Abuja. The proposal follows protests by retired police officers who decried poor welfare and demanded exit from the Contributory Pension Scheme (CPS). However, PenCom believes that such a move would be unnecessary and…

Bluewater CEO Speaks Out After Plastic Treaty Talks Collapse in Geneva Bluewater CEO and founder Bengt Rittri has spoken out with frustration and sadness after world leaders in Geneva failed to reach an agreement on a global plastics treaty. Talks collapsed under pressure from petro-states, leaving billions of people facing the consequences. “Think about it: over 600 billion single-use plastic bottles are made every year, and less than ten percent ever get recycled,” Rittri said. “That means the rest end up in landfills, rivers, oceans — or in the air we breathe and the food we eat. We’re leaving a…

Inflation Rate in Nigeria Declines by 34bps to 21.88% The rebased consumer price index (CPI) showed that inflation rate in Nigeria declined by 34 basis points to 21.88% in July, the National Bureau of Statistics (NBS) said in a report on Friday. The consumer price index moderation is in line with market expectations, reflecting the local exchange rate stability in the absence of pressures from petroleum prices in the period. Based on the CPI data released, Nigeria’s headline inflation eased by 34 bps to 21.88% y/y in July from 22.22% year on year. On a month-on-month basis, consumer prices increased…

Naira Gains as Inflows from IOCs, Exporters Boost FX Liquidity The naira gained against the US dollar at the Nigerian Foreign Exchange Market (NFEM) as inflows from across key sources boost the supply side amidst rising foreign reserves. The exchange rate has been stabilised, reflecting corporate and foreign investors’ confidence about the Nigeria forex market. U.S dollar turnover has been supported by FX inflows from foreign portfolio investors taking bets on Nigerian OMO bills in addition to exporters’ contributions and the latest round of foreign currency streams from international oil companies (IOCs). FX update from the Central Bank of Nigeria…

Nigerian Exchange Shrinks as Equity Investors Lose N357bln Equity investors lost N357 billion on Thursday as investors sold down interest in some listed companies on the Nigerian Exchange (NGX) trading platform. As a result of the activities of sell-side actors, the NGX All-Share Index dropped by 39 basis points to close the day at 145,300.01 points—driving other key performance indicators southward. In their separate notes, stockbrokers said today’s negative outing was largely influenced by sell-side pressure on some mid- to high capitalised stocks. Hence, the year-to-date return moderated to 41.17%, still strongly ahead of the annual inflation rate. On the…