Author: Julius Alagbe

Inflows into Nigeria’s FX Market Increases by 21% The volume of US dollars that flew into the Nigerian autonomous foreign exchange (FX) market increased by more than 21% on a monthly comparison basis in July, according to data from the FMDQ Exchange platform. The surge was spurred by an improved revenue generation from foreign transactions. This boosted exporters FX inflows contribution to the currency supplied in the market in August as per data obtained from the FMDQ securities exchange platform. On the import side, Nigeria continues to raise demand for FX priced goods and services. The huge FX liabilities on…

Money Market Rates Surge as OMO, CRR Debits Drag Liquidity The interbank rates climbed to about 32% apiece in the money market due to sustained strain on the financial system liquidity.  The funding level in the financial system causes short term benchmark interest rates to increase as the market continues to allocate resources to better use. The system liquidity started the week positive but decreased during the week, following the OMO auction settlement worth ₦459.60 billion. Due to a strain on funding level, transaction at the money market environment were conducted at higher rates. Data from the FMDQ platform showed…

CBN Slashes Treasury, OMO Bill Rates at Main Auctions The Central Bank of Nigeria (CBN) has further slashed spot rates on short term borrowing instruments as investors continue to park funds in money market assets. The average yield on short term investment options declined further in the financial markets due to investors’ aggressive demand following the inflation rate slowdown. The average yield on Nigerian Treasury bills declined due to sustained demand across tenors in the secondary market. The market witnessed similar buying interest in the OMO bills segment. The demand for these naira assets dragged yield lower as the market…

Petrol Price Hike Threatens Nigeria’s Disinflation Expectation –Analysts Nigeria’s inflation rate could reverse from the current trend in September due to the magnitude of the price hike, analysts said in a discussion with MarketForces Africa. In a separate chat with financial experts, MarketForces Africa gathered that the fact that fuel is fundamental to every economic activities could re-direct inflation trajectory as the effects filter into business. “.. petrol pump price increment by the Nigerian National Petroleum Corporation Limited will halt disinflation,” an email note from LSintelligence Associates stated. Last week, the Nigerian National Petroleum Corporation Limited hiked the retail pump…

Market Value of Top 5 Banks in Nigeria Drops to N4.77Trn Sell side activities on Nigerian Tier-1 banks stocks plunged the banking index down by 12 basis points, according to data from the domestic bourse. This week, all the big banks fell through in the hands of investors trading highs and lows on the Nigerian Exchange (NGX) platforms due to riskoff sentiment. At the end of closing session on Friday, all the big banking names, namely GTCO, Zenith, UBA, FBN Holdings, and Access Holdings, were worth N4.776 trillion, or $2.9 billion in the market. Last week, MarketForces Africa stock tracking…

U.S Fines Six Major Rating Agencies $49m for Breaches The U.S. Securities and Exchange Commission (SEC) has imposed fines totaling $49 million on six major credit rating agencies for their failure to maintain and preserve electronic communications as required under federal securities laws. The fine follow was the authority called ‘significant failures’ by the firms and their personnel to maintain and preserve electronic communications. The affected ratings agencies, including Moody’s Investor Services, S&P Global Ratings, received the heaviest fines, each agreeing to pay a $20 million civil penalty. Fitch Ratings was fined $8 million, while A.M. Best Rating Services, HR…

Oando, Eterna Gain Weight as Investors’ Keep Eyes on Oil Stocks Oando, Eterna and other top energy companies’ gained weight as their combined market value increased to about N3.5 trillion on the Nigerian Exchange (NGX) despite mixed trading outings in the local bourse. According to stockbrokers, demand for oil stocks gained momentum in the trading platform as key players like TotalEnergies, Oando, and ETERNA continued to cap gains. Recent market track records showed these oil stocks have been making an uptrend, reporting good earnings scorecards due to stable global oil prices. Hence, investors kept eyes on price movement on the…

Petrol: SERAP Urges Tinubu to Reverse Price Hike, Probe NNPCL Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to use his “leadership position and good offices to direct the Nigerian National Petroleum Company Limited (NNPCL), to immediately reverse what it described as the “illegal and unconstitutional” increase in the pump price of premium motor spirit or petrol across its retail outlets. In a statement by SERAP’s Deputy Director, Kolawole Oluwadare on Sunday, also urged Tinubu to direct the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, and appropriate anti-corruption agencies, to probe the…

Regulation: SEC Warns Against Capital Market Infractions  The Securities and Exchange Commission (SEC) has warned individuals and business entities engaging in activities contrary to laid down regulations in the capital market. The Director-General of SEC, Dr Emomotimi Agama, said in a statement in Abuja on Sunday, that the commission would deploy the law on such defaulters. Agama said that the commission would soon commence enforcement against individuals and entities operating in the market without the intention of being regulated. He said that the commission was committed to protecting investors, including those in the crypto-space. He urged all participants in the…

Nigerian Exchange Declines by N84bn as Selloffs Heat Up The equities market capitalisation of the Nigerian Exchange (NGX) declined by about N84 billion in five trading sessions last week due to selloffs in sectorial indicators. The local bourse retreated from last week’s positive’s territory, triggered by activities of sell side actors on major stocks despite pockets of gains during the week. As a result of the trading pattern, NGX year-to-date return (YTD) moderated to 29.0% from 29.2%. The benchmark All-Share Index of the market registered a 0.15% decline on a week-on-week basis, though, above the 96,000 psychological threshold to close…