Author: Julius Alagbe

Foreign Investors Dump Nigeria OMO Bills Ahead of Repayment The average yield on Nigerian Treasury bills and OMO papers surged during the week due to significant sell pressures witnessed in the secondary market. Portfolio rebalancing and downbeat investors’ sentiment boosted yields on short-term borrowing instruments. Specifically, foreign portfolio investors and local deposit money banks trimmed their interest in OMO bills ahead of N1.44 trillion repayment next week. Due to sustained yield tightening and spot rates priced down amidst a firming naira, investors offloaded their positions, with large offers particularly seen in the OMO segment. Investors exited positions amidst anticipated disinflation,…

Zenith Bank Price Target Sets at N81 after Q3 Earnings Reflecting a positive upside potential of about 30%, investment firm AAG Capital Limited has set N81 as the target price for Zenith Bank Plc following a third quarter of 2025 earnings release. Data from the Nigerian Exchange (NGX) showed Zenith Bank share price closed at N63, which translates to 29% upside potential at the reference price. With its higher net asset value compared with stock market price, analysts told MarketForces Africa that Zenith Bank is grossly undervalued. Net asset of Zenith Bank surged by 34.8% to N4.730 trillion from N3.508…

British Pound Falls Ahead of Rate Decision, November Budget The British pound, or sterling, closed negative against the US dollar at markets priced in the Bank of England interest rate cut on November 6, and Uk fiscal budget. UK fiscal pressure has become a concern, and this has triggered steep sell pressure across forex markets at the time China and the US are enhancing their trade relationship. The trade war truce continues to help the dollar, which saw most gains against trading partners this week. Sterling has had a tough week, though the economic diary was light. It was sold…

Euro Falls Against Dollar as Single Currency Faces Sell-Off The European Union single currency, the euro, eased toward $1.15 in the forex market; the single currency saw the weakest level since late July following the European Central Bank (ECB) rate decision. There’s some speculation in the market that the euro could fall below $1.15 but this looks unlikely given prospects of further weak U.S. jobs data,ING FX analyst Francesco Pesole said in a note. The ECB held its deposit rate at 2%, marking a third pause since June’s cut. The Monetary Policy Committee’s statement gave little to no forward guidance, with…

DXY Hits 3-Month High on Deescalated US-China Trade Tension The US dollar index (DXY) is near a three-month high at 99.80, on track for a second consecutive monthly gain, supported by deescalated trade tension while expectations of another rate cut fade. A combination of the hawkish cut by the Fed and what appears to be an important de-escalation of US-China trade tensions helped lift the Dollar Index to a new high for the month. In Oct, the US dollar gained 4.11% against the Japanese Yen, settling at 154.01 on Friday. For the same period, the greenback has also gained 1.44%…

Naira Rises to N1421/$ as Nigeria’s External Reserves Surge In an all-week rally, the Nigerian local currency, the naira, appreciated sharply at the official window, settling at N1421/$ due to significant liquidity in the forex market. The local currency has gained N36 per dollar at the official window in the last five trading sessions. Updated data from the Central Bank indicates that the spot rate surged by 107 basis points on Friday to N1421.73 per greenback. The spot rate touched an intraday high of N1434.5000 in the absence of FX pressures in the currency market. The official rate tested N1415…

Nigerian Bonds Rally as Tax Exclusion Boosts Investors’ Appetite Trading activity on Nigerian government was subdued in the secondary market, though with mildly bullish sentiments at the short (-1bp) end of the curve. Federal tax authority’s deliberate exclusion of local bonds from withholding tax lifted investors’ appetite on Thursday. Investors rotate back into local bonds after previous sell pressures in reaction to downward spot rate adjustments at the Debt Office Auction for October. The benchmark bonds yield came behind headline inflation which printed at 18.02% for Sept, with real interest rate of about 9%. Broadstreet investment analysts anticipate inflation to…

Oando Profit Grows by 164% as Group Recognises N182bn Tax Credit Oando Plc’s profit after tax skyrocketed by 164% year-on-year, reaching N201.3 billion in the first nine months of the 2025 financial year, compared to N76.3 billion in the same period of 2024, its unaudited financial statement revealed. The significant profitability growth was supported by a stronger underlying performance from the E&P segment and favourable tax-related adjustments, which resulted in about N182 billion in tax credit recognition. Reflecting its bumper bottom line performance, earnings per share increased by 167% to N16/share from N6/share in the comparable period. Oando gross profit…

MTN Nigeria Grows Profit by 245%, Declares Interim Dividend Telecommunication giant MTN Nigeria Plc profit grew by more than 245% year on year to N750.185 billion in the third quarter from about N515 billion lost after tax in the equivalent period. After a long holiday for dividend payment, MTN Nigeria’s board of directors declared an interim profit distribution of N5 per ordinary share payment to shareholders. Details from its 9-Month financials showed that the telecom company’s total revenue increased by 57.4% year on year to N3.731 trillion from N2.370 trillion in the comparable period in 2024. Breakdown showed that data…

Nigeria to Refinance $1.12 bn Eurobonds Expiring in November LAGOS, NIGERIA: Nigeria is poised to replace its $1.118 billion sovereign Eurobond due to settlement in November as the lawmakers approve $2.85 billion in external borrowing for President Bola Tinubu. Without refinancing, the government will be obligated to settle foreign investors with approximately $1.2 billion, which could shake the nation’s external reserve balance significantly and undo the naira rally. Some analysts said the refinance borrowing note will probably attract lower rates considering the country’s improving macroeconomic indicators and global central bank monetary easing traction. “You cannot rule out foreign investors’ sentiment…