Author: Olu Anisere

U.S Sanctions on Russian Production, Export Flows Raise Energy Cost The global energy costs spiked as the U.S. latest sanctions target Russian oil production and export flows. On Friday, the US announced wide-sweeping sanctions against the Russian energy sector, which saw ICE Brent break well above US$80 per barrel. The announcement of sanctions also led to significant strength in the gasoil crack, with it trading above US$21 per barrel at one stage yesterday and to its highest level since July, according to ING commodities strategists. Energy prices spiked higher yesterday as the market digested the latest US sanctions against the…

The naira plunged, losing about N6 per US dollar traded in the official market on Monday due to surging demand….

Riskoff Sentiment Pushed Nigeria’s Eurobond Yield to 19.5% Nigeria’s sovereign Eurobond yield rose as foreign investors reduced their interest ahead of inflation data. The National Bureau of Statistics is expected to release the inflation figure for December amidst a plan to rebase the consumer price index and gross domestic product to reflect recent developments in the economy. The market experienced sell pressure across the short, mid, and long ends of the yield curve, leading to a 0.05% increase in the average yield to 9.52%, Cowry Asset Limited said in a report. Analysts explained that the Eurobond market began positively with…

Sterling Slides to 14-Month Low, Investors Hit with Bleak Prediction The pound’s dramatic fall to a 14-month low against the US dollar highlights a growing crisis in confidence over the UK economy. In a commentary note made available to MarketForces Africa, Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, is now warning that the “negative momentum surrounding sterling could deepen further, with the currency at risk of losing up to another 5%.” On Friday, sterling dropped sharply to $1.23 at one point before recovering slightly. This latest slide follows a…

Oil Rises as Sanctions Target Russian Production, Export Flows Oil prices rose in the global commodities market on Monday as U.S. sanctions target Russian production and export flows. On Monday, Brent crude rose by 1.6%, reaching $80.45 per barrel. The US benchmark West Texas Intermediate (WTI) increased by 1.6%, rising to $76.98 per barrel compared to its prior session close of $75.79. Both benchmarks surged in response to US sanctions on Russian oil producers and exporters, amplifying concerns over global supply. As a result, oil prices hit their highest level since October 2024. On Friday, the US Department of the…

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…