Author: Julius Alagbe

Nigeria’s Eurobond Yield Rises to 9.6% as Foreign Investors Adjust In Nigeria’s sovereign Eurobond market, sell pressure across the short, mid, and long ends of the yield curve resulted in a 0.13% rise in the average yield, reaching 9.6% in the just concluded week. The market has been adjusting to US Fed rates slash, while the local authority increased benchmark interest rate to 27. 25% in Sept kick started some portfolio adjustment in the market. Macroeconomic data suggests Nigeria’s economic is going positive in terms of disinflation and economic growth. However, the risk off sentiment on Nigeria’s sovereign Eurobond was…

Brent Falls by 5% to $71 amidst Demand Concerns Oil prices are on track for a weekly decline on Friday with expectation of an increase in major oil producers amid weakening global demand. Brent fell by 4.8% to $71 per barrel over an unimpressive demand outlook.  West Texas Intermediate (WTI), the American benchmark, traded at $67.60 a barrel.  Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries (OPEC), is expected to ramp up output from December in a bid to reclaim market share. In June, the OPEC+ group, consisting of OPEC members and other big producers…

Nigerian Treasury Bills Yield Rises as Discount Rates Increase The average yield on Nigerian Treasury bills spiked as investors reacted to the rate hike with profit taking activities in the secondary market. Sell side activities were witnessed across the Nigerian Treasury bill tenors as investors began to seek higher returns on naira assets on the back of high interest, and an inflation rate environment.  The average yield across all instruments expanded by 45 basis points to 25.1%, Cordros Capital Limited said in its market update. Traders also noted that across the market segments, the average yield increased by 34 basis…

Benchmark yields on Nigerian government bonds spiked in the secondary market as fixed interest securities investors trimmed their portfolio holdings.

Money market rates diverge on the back of a significant decline in liquidity balance in the financial system following Central Bank of Nigeria (CBN) monetary policy action.

BUA Foods Shareholders to Get N5.50 Dividend Per Share BUA Foods shareholders are to get N5.50 dividend per share following an approval obtained at the company’s annual general meeting. In its financial statement for 2023, the fast moving consumer goods company declared a revenue of N729.4 billion, an increase of 74.4 percent relative to its 2022 revenue. The Chairman of BUA Foods, Alhaji Abdul Rabiu, said this at the 3rd Annual General Meeting of the company on Thursday in Abuja. While presenting the annual report and accounts of the company for the financial year 2023, Rabiu said that the company…

Naira Strengthens to N1,540 as Huge FX Auction Eased Volatility The naira exchange rate strengthened to N1,540 against the US dollar in the foreign currency market following huge FX intervention. Exchange rates had worsened due to delayed FX sales to ease liquidity pressure. In its latest market action, the Central Bank of Nigeria (CBN) as part of efforts to boost foreign currency liquidity sold US dollar to Bureau de Change (BDC) operators and local deposit money banks. In a latest notice, the apex bank sold $20,000 to BDCs operators to reduce demand pressure in the informal segment. The CBN also…

Nigeria’s gross external reserves balance increased to about $37.869 billion amidst sustained foreign currency inflows into the economy, data from the Central Bank (CBN) showed.

GCR Affirms AIICO Capital Limited Rating with Stable Outlook GCR Ratings (GCR) has affirmed AIICO Capital Limited’s national scale long- and short-term issuer ratings of A-(NG) and A2 (NG) respectively, with a stable outlook. In a rating note, GCR said The affirmation of AIICO Capital Limited, the asset management company ratings reflects the sustained strong group support from its assimilation and importance to its parent, AIICO Insurance Plc. Also, the ratings balance the asset manager’s good risk position and adequate liquidity against an intermediate leverage assessment due to significant on-balance sheet exposures, GCR said. The rating note stated that AIICO…

Ethiopia to Access $345 Million IMF Credit Facility Ethiopian authorities have reached staff-level agreement on economic policies to conclude the first review of the four-year US$ 3.4 billion ECF arrangement with the International Monetary Fund (IMF) staff. In a statement, the multilateral lender said formal completion of the review by its Executive Board would give Ethiopia access to financing of about US$345 million.   Implementation of Ethiopia’s homegrown economic reform program, including the adoption of a floating exchange rate regime in late July, is advancing well, IMF said. The Fund said the exchange rate in the official market has largely closed…