Author: Olu Anisere

Interbank Rates Climb as Swap, OMO Outflows Squeeze Liquidity Liqudity squeeze driven by the Central Bank of Nigeria’s (CBN) swap arrangement, OMO, and Treasury bills auction outflows pushed interbank rates higher week on week. Analysts said in their separate reports that money market rates were heated up following a tight liquidity condition spurred by CBN activities that triggered outflows of funds that tightened liquidity. . Nonetheless, financial system liquidity remained strong as the average system liquidity settled at a net long position of N401.74 billion as against a net long position of N461.76 billion in the previous week, Cordros Capital…

Equities Investors See N1.14trn Gain in Nigerian Exchange Equities investors gained N1.14 trillion in the Nigerian market on the back of strong bargain hunting that spanned four out of five trading sessions. Stockbrokers noted that the market extended its bullish run, gaining 1.80% week-on-week to close at 105,451.06 points. This performance builds on an impressive 37.65% year-to-date gain in 2024, which notably outpaces the local inflation rate of 34.60% as of November 2024, Cowry Asset Limited said in its report. The rally comes as investors assess Nigeria’s macroeconomic fundamentals and position themselves for opportunities ahead of Q4 2024 unaudited financial…

Short-term Rates Increase Sharply as Banking System Liquidity Dips Money market rates increased sharply as liquidity levels in the Nigerian banking system declined following the OMO and Treasury bills auction. The market woke up to N500 billion OMO bill auction, and on Wednesday, the Debt Management Office launched its N515 billion Treasury bills for subscription. The auctions mopped up a significant amount from the financial system, resulting in a spike in short-term benchmark interest rate on money market instruments. In the absence of significant inflows from maturing instruments, analysts expressed views that rates in the money market would cross the…

Bond Yield Clears at 19.78% on Subdued Trading The Nigerian government bonds experienced minimal activities at the secondary market ahead of 2025 primary market auctions worth more than N7 trillion. In 2025, the Debt Management Office is expected to raise local borrowing via bond issuance to investors’ to support government deficit budget. Some analysts are projecting that the authority will frontload in the first and second quarter of the fiscal year to raise enough money for government spending. On Monday, the bond market saw a mixed trading session, with tepid sell orders prevailing at the near and far segments, offsetting…

Oil Prices Slip, Saudi Hikes Price for Asian Buyers Crude oil prices retreated during early trading hours on Tuesday as uncertainties in the global commodities market persisted. The market has seen sustained imbalance between demand and supply side with Middle East tension, sanctions against Russia, and OPEC+ oil production extensions. On the demand side, China and U.S demand outlook remain uncertain as a result of weak economic data. The move higher in crude oil prices appears to be running out of momentum with ICE Brent settling 0.27% lower on the day, ING commodities strategists said in a note. Although Brent…

Bargain hunting in Nigeria’s sovereign Eurobonds market across the short, mid, and long ends of the yield curve

Oil prices retreated from three-month highs on Monday as Asian buyers shifted attention to Middle Eastern grades amidst growing concerns over a potential recession in major global economies.

The average yield on Nigerian government bonds surged by 2 basis points to close at 19.78% in the secondary market ahead of fresh supply. Trading activities were subdued last week, with minimal trading activity at the short end (+4 bps) of the curve as markets await further details on Debt Office local borrowings for 2025.

Neimeth Hits 52-Week High as Investors Hunt for Pharma Stock Neimeth International Pharmaceutical Plc experienced a valuation surge in the equities segment of the Nigerian Exchange (NGX) due to demand for pharma shares. Data showed that Neimeth was second on the top performer chart in the local bourse last week as pharma stock got popular among value hunting investors. According to data from the Nigerian bourse, Neimeth share price inched higher from N1.90 to N2.76 on Friday—the best price its attained in the last 12 months. This lifted the market value of the company’s 4.273 billion shares outstanding to N11.793…

Oil Prices Uptick First Week on Demand Expectations Oil prices surge in the first week due to expectation that demand will increase amidst geopolitical pressure on the supply side. Key prices drivers was optimism about increased economic activity in China and the US, the world’s largest oil consumers. On Friday, Brent rose to $75.48 per barrel, up by around 2.8% relative to the closing price of $73.40 a barrel last week. West Texas Intermediate (WTI), the American benchmark, traded at $72.44 a barrel at the same time on Friday, a rise of about 3.3% from last Friday’s session, which closed…