Author: Olu Anisere

Excess Liquidity in Banking System Hits N4trn, Rates Steady With about N4 trillion on record, the financial system has been flooded with excess liquidity that keeps the short-term benchmark interest rates movements in check. The banking liquidity surged to about N4 trillion, supported by additional inflows, including OMO bills repayments after recent statutory disbursement to states. On Thursday, the banking system closed at N3.975 trillion as the money market recorded about N150 billion in additional credit flow, data provided by AIICO Capital Limited revealed. “As the market continued to adjust to the moneary policy committee’s asymmetric corridor, the interbank market…

South African Rand Gains Versus USD as Precious Metals Rally The South African rand edged up against the US dollar (USD) on Thursday, hovering around 17.3 per USD, supported by higher prices for precious metals, particularly gold, and a broadly subdued dollar. Prices are uptrend boosting the country’s fiscal outlook and private investment in the segment. South Africa is top of the list of the world’s top platinum producers, with production of 120,000 kilograms in 2024. The country is also a major producer of palladium, taking second place globally with 72,000 kilograms last year. The country holds the largest-known reserves…

Oil Prices Decline as Markets Eye Supply Boost from Iraq Oil prices declined on Thursday as markets anticipate supply boost from Iraq export coming into the global commodity market. Concerns about supply driven by geopolitical tensions eased, supported by prospects of crude export resumption from Iraq’s Kurdish Regional Government (KRG), while a surprise draw in US inventories curbed deeper losses. Brent crude was trading at $68.26 per barrel, down 0.13% from the previous close of $68.35. US benchmark West Texas Intermediate (WTI) decreased by 0.12% to $64.58 from $64.66 in the prior session. The KRG’s Ministry of Natural Resources said…

Nigerian Exchange Down, Investors Lose N135bn as Selloffs Persist The equities segment of the Nigerian Exchange (NGX) experienced a another downtrend on Wednesday as bearish sentiment knocked off more than N135 billion from equities portfolio value. Bearish sentiments persisted as losses in MTNN (-4.8%), JAIZBANK (-4.4%), and WAPIC (-8.8%) drove the All-Share Index lower by 0.2% to 140,716.10 points. Investors profit taking activities knocked down NGX year to date return to 36.72% amidst looming third quarter earnings release. Trading data showed that Market activity increased, with trading volume decreasing by 6.16% to 431 million units, and the total transaction value…

Moody’s Affirms Namibia’s B1 Ratings, Maintains Positive Outlook Moody’s Ratings has today affirmed the Government of Namibia’s B1 long-term foreign currency and local currency issuer ratings and maintained the positive outlook.The global ratings agency analysts also affirmed Namibia’s foreign currency senior unsecured debt rating at B1. The positive outlook for Namibia, in place since April 2024, continues to reflect the prospects for improvements in its fiscal profile, growth trajectory, and external liquidity buffers, the rating note said. Moody’s said the return to primary surpluses since fiscal 2023 ending in March 2024 has stabilized the debt burden and, if sustained, will…

Navigating Private Fund Setup from Idea to Launch Launching a private fund can be daunting. While choosing a vehicle and raising money are essential components, aligning structure, regulation, and investor expectations are basics that ensure the launch isn’t derailed. The first critical step is selecting the vehicle. Would a RAIF or SIF in Luxembourg be ideal? An Exempted Company or Limited Partnership in Cayman? A Qualified Investor Fund (QIF) or Exempt Fund under the DFSA in DIFC? Each vehicle brings different legal forms, liability regimes, and marketing rights. In Luxembourg, for example, a Reserved Alternative Investment Fund (RAIF) doesn’t require…

Oil Prices Diverge as Markets Weigh Concerns over Crude Supply Oil prices diverge in the global commodity market as investors weigh concern over crude oil supply following the EU’s new sanction against Russian exports. The markets face uncertainties from Middle East unrest, as geopolitical tensions, including attacks on the Red Sea, remain negative for oil supply outlook. Trading data revealed that Brent inched higher during earning hours while WTI slipped, as cautious remarks from US Federal Reserve (Fed) Chair Jerome Powell Specifically, Brent crude was trading at $67.32 per barrel, up 0.1% from the previous close of $67.25. Meanwhile, US…

GCR Upgrades Jaiz Bank’s Rating, Outlook Revised to Stable GCR Ratings upgrades Jaiz Bank Plc’s national scale long term issuer rating to BBB(NG) from BBB-(NG) and affirmed the short-term issuer rating of A3(NG). The Islamic lender rating outlook was also revised to stable from positive, according to the rating note. The rating upgrade reflects Jaiz Bank Plc’s strengthened capitalisation, driven by equity injection and its improved earnings generation and retention, GCR said in its update. It added that Jaiz Bank ratings also balance the bank’s stable funding structure, and adequate liquidity profile against a concentrated customer deposit book and weakening…

Dangote Sugar Refinery Plunges by 10% on Huge Selloffs Dangote Sugar Refinery Plc plunged by 10% as investors reduced their interest in the company amidst looming third quarter earnings season. Investors who held position in the sugar refinery exited their positions, causing the share price decline to N54 on the back of 4.455 million units valued at N261.579 million executed in the local exchange. The selloffs reflect negative sentiment in the absence of any other disclosure with capability to fuel demand for Dangote Sugar shares in the market. Trading data from the Nigerian Exchange (NGX) showed the market price down…

First Holdco Records Significant Block Trade, MV Slides First Holdco Plc market value (MV) declined to N1.285 trillion following significant block trade outside the Nigerian Exchange trading platform on Tuesday. Its share price fell to N30.7 as 100.993 million units of First Holdco shares outstanding on the Nigerian Exchange valued at N3.151 billion were traded. A transactions totalling 63 million shares were executed at the same market price of ₦31.20 resulting in a trade value of ₦2.7 billion, Anchoria Securities Limited told investors in a note. The group market value reduced by more than N25 billion following Tuesday trading activities…