Author: Julius Alagbe

Sustained riskoff sentiment on the Federal Government of Nigeria (FGN) bond persisted in the secondary market over subdued

With an expectation to keep returns optimsed, the Nigerian Eurobond gained foreign investors’ attention

Money Market Rates Climb Despite FGN Sukuk Inflow The money market rates climbed further despite the fact that inflows from the matured FGN Sukuk hit the financial system. Liquidity level kept transactions tightened as the market sought to allocate funding appropriately to best use among key players.  Investment analysts reported that opening system liquidity improved because of inflows from FGN Sukuk 2024 maturity on Thursday, according to AIICO Capital Limited.  A total sum of N335.78 billion inflows from FGN bond coupon payments was recorded in the financial system, according to Cordros Capital Limited. Even with this, interbank rates closed higher…

Naira Rises Sharply on CBN Action, Rising FX Reserves The naira rises sharply to N1,576 against the US dollar in the foreign exchange (FX) market following notice of FX sales to Bureau de Change (BDC) operators. The significant daily exchange rate movement was driven by improved FX liquidity conditions in the currency market yesterday. MarketForces Africa reported that the Central Bank of Nigeria (CBN) announced $20,000 FX sales to BDCs at N1,579 per US dollar, capping the operators spread at one percent of their respective purchase rate. The US dollar sold to BDCs reduced demand pressure in the parallel market…

CBN Sells OMO Bills to Investors at 24.36% Interest Rate The Central Bank of Nigeria (CBN) sold OMO bills at the spot rate of 24.36% to investors at the primary market auction on Thursday. t the OMO auction, the CBN offered ₦500 billion across standard maturities, which are 96-day, 194-day, and 362-day papers. However, demand was weak, with offers totaling ₦252.90 billion only seen for the longest-dated instrument, CardinalStone Securities Limited told investors in an emailed note. The investment firm explained that bets on CBN OMO bills by investors resulted in a bid-to-offer ratio of 0.51x, with the stop rate…

NGX Loses N267bn as Investors Sell MTN, OANDO Shares Equities investors lost about N267 billion due to sell side activities on the Nigerian Exchange (NGX) after days of gaining streaks. Post rate hike profit picking on stocks, which recently recorded strong price appreciation, drove down equities market performance indicators on Thursday. Stockbrokers said key performance indicators plunged by 0.47% while year-to-date return moderated due to sizeable selloffs witnessed in the market. The NGX All-Share Index reduced by 463.86 basis points, reflecting a 0.47% decrease to close at 98,523.56. This downturn snapped the market’s four-day bullish streak, with investors taking profit…

OPEC Projects 24% Increase in Global Oil Demand Global energy demand will increase by over 24% by 2050 compared to 2023, according to the World Oil Outlook 2050 by the Organization of the Petroleum Exporting Countries (OPEC). The oil group forecasts that primary global energy demand will increase to 374.1 million barrels of oil equivalent per day (boepd) in 2050, representing a rise of around 72.9 million boepd from the 2023 level. The average annual growth rate between 2023 and 2050 is expected to be 0.8%, with growth decelerating towards the end of the outlook. ‘This is in line with…

Excelsior to Acquire Flour Mills of Nigeria Minority Shareholders Excelsior, Flour Mills of Nigeria (FMN) Plc’s majority shareholder has moved to acquire the non-controlling interest or minority shareholder interest in the fast moving consumer goods company. Following the announcement, share price increased by 10%, or N5.50, on the Nigerian Exchange (NGX) to settle at N60.50 on Wednesday. In an official statement, Flour Mills of Nigeria Plc notifies Nigerian Exchange Limited that it received an offer from the majority shareholder – Excelsior Shipping Company Limited – to acquire all the shares held by the minority shareholders in Flour Mills. According to…

CBN Sells US Dollar to BDCs at N77.42 Discount The Central Bank of Nigeria (CBN) has moved to provide discounted US dollar sales to the Bureau de Change (BDC) operators as exchange rate wobbled. In the official FX market, the naira fell to N1667.42 while the exchange rate settled at N1675 per US dollar. Both rates have already touched the central bank ‘fear index’ where the authority reacts with market invention and maintains its cool at rates below these levels in the currency markets. In a statement, the apex said it has approved 20,000 US dollar sales to Bureau de…

The Nigerian Treasury bills yield rose sharply as the market reacted to the monetary policy rate hike