Author: Julius Alagbe

Caverton Offshore Support Group topped performers on the Nigerian Exchange with more than 45% positive price appreciation…

The market value of Fidelity Bank Plc rose by more than 24% week on week as investors accumulated the tier-1 lender shares.

Uncertainties Keep Ethiopia at Edge Amidst Debt Shakeup Ethiopia’s economic growth expectation remains under threat due to a series of macroeconomic pressures facing the country even after the International Monetary Fund (IMF) extended a helping hand. Fiscal performance remains weak with negative impacts on government spending. Low revenue generation had resulted in borrowing until an external borrowing window was locked against Ethiopia due to a high interest rate in the global market and blockage due to payment default. With a subtle currency crisis, inflation, and unemployment rate, the government has been working tirelessly to push the country’s economic pole to…

The Federal Government (FG) has signed a Memorandum of Understanding (MoU) with the Russian firm, Tyazhpromexport (TPE), the original builders of the Ajaokuta Steel Plant

Liquidity: Nigerian Banks Trim Investment in Nigerian Bills The average yield on Nigerian Treasury bills climbed by 24 basis points as flexible market dynamics, and liquidity pressure in the financial system triggered naira asset selloffs. In the secondary market, sell side actors remained active on Thursday, with profit taking activities witnessed across the short, belly, and long ends of the curve. Some fixed income experts told MarketForces Africa the sustained selloffs were a result of a tight liquidity level in the financial system. The funding system has remained tight, and banks that have investment securities were noted to be major…

Interbank Rates Rise as Banks Borrow to Close Funding Gap The short-term interest rates climbed further in the money market due to sustained liquidity pressure in the financial system. While there have been outflows relating to auctions by the apex bank, the inflows from maturing instruments have been limited. The system has seen huge amounts taken out for FX auctions, Nigerian Treasury bills sales to investors who are somewhat local deposit money banks that invest in short term securities, and other related system outflows that kept liquidity balance in negative for a long while. A number of authorised dealer deposit…

Coca-Cola to Invest $1 Billion in Nigeria The Coca-Cola System in Nigeria, comprised of Coca-Cola Nigeria Limited and its authorized bottler, Nigeria Bottling Company (NBC), announced plans to expand its investments in Nigeria. In a statement, the company said over the next five years, with a predictable and enabling environment in place, the System plans to accelerate its investments in Nigeria to reach US$ 1 billion. The investment builds on the System’s long-standing involvement in Nigerian communities. Over the last 10 years, Coca-Cola Hellenic Bottling Company, known locally as Nigerian Bottling Company, has invested $1.5 billion in Nigeria. With today’s…

Naira Falls to N1,544 as Huge FX Gap Stirs Currency Speculation The Nigerian naira fell by 28 basis points against the US dollar in the foreign exchange (FX) market on Thursday due to demand pressure. Analysts said exchange rate woes would persist until there is a clear cut policy direction to defend the local currency against the dominant foreign currencies. Nigeria’s FX liquidity challenge has continued to keep the exchange rate at the edge while the naira purchasing power strengthening is at the mercy of the CBN auction. The exchange rate had improved by more than 7% after the Central…

Investors Lose N105bn as Equities Market Backflip Investors lost about N105 billion as the equities market segment of the Nigerian Exchange (NGX) backflip after gaining streaks spanning four trading sessions. The market was booming with investors taking positions in banking, consumer, and oil and gas indexes amidst declining spot rates in the fixed income market. Key performance indicators declined by 0.19% as investors began to take profit on stocks that had rallied. The market index or the All-Share Index dipped by 181.88 basis points to close at 98,049.04 points, data obtained from the Nigerian Exchange showed. The local market halted…

Nigeria’s Eurobond Yield Climbs as Markets Expect Rate Competition Nigeria’s sovereign Eurobond yield climbed in the international market as foreign investors began to weigh the impacts of the US Fed rate cut on their respective portfolio returns. In the coming months, foreign investors could begin to raise bets on African Eurobond assets and local bonds with competitive returns on the back of the dovish position on Fed fund rates down the year. The US Federal Reserve hacked rate by 50 basis points, first time since 2020 – signaling a move away from its hawkish monetary policy stance, bring fed fund…