Author: Marketforces Africa

INTBREW, Banking Stocks Drive Intraday Loss on NGX International Breweries Plc (Ticker: INTBREW) and some banking stocks, including Ecobank, GTCO, and FCMB, are driving intraday loss in the equities market on Wednesday, trading details from the Nigerian Exchange (NGX) revealed. The top banking names had bucked the negative trend in the stock market on Tuesday even while the NGX all-share index went south. Amidst a flurry of earnings releases, the bearish trend in the local bourse persisted, and signals showed equities market capitalisation is more likely to reduce sharply at the end of the trading session. Investors are currently taking…

Banking System Liquidity Surplus Tamed Rates Swing Banking system liquidity surplus has continued to tame short-term benchmark interest rates movement in the money market. Reversing the previous trend, local deposit money banks are pumping excess liquidity into the Central Bank of Nigeria (CBN) Standing Deposit Facility (SLF). Borrowing activities at the Apex Bank standing lending facility have dropped drastically as liquidity balance remained healthy in April, bolstered by CBN FX swap payments, FAAC allocations, and contract payments. The money market rates maintained track, trending behind the 27% level after two consecutive OMO bill auctions, monthly FGN bond sales, and Nigerian…

MTN Nigeria Slumps by 6% in Huge Cross Deal Volume Driven by a huge off-market transaction volume, MTN Nigeria Plc’s stock market value slumped by more than 6% in the equities segment of the Nigerian Exchange (NGX) platform. The telco stock price fell in spite of the fact that huge volumes were traded in blocks. Stockbrokers reported that Ticker: MTNN led the value log in the local bourse with N20.93 billion worth of shares closed in cross deals. This means that an accredited stockbroker paired buy and sell orders from customers outside the Nigerian Exchange trading platform. The stock accounted…

Zenith Bank, GTCO, UBA Rally Boost Banking Index Zenith Bank, GTCO, UBA, and other tier 1 rated financial institutions’ positive price movement boosted the Nigerian Exchange banking index, according to trading records for Tuesday. All the tier-1 banking group with more than N1 trillion in market capitalisation gained traction except First Holdco, which shed 2 basis points following its annual general meeting notice.  First Holdco said in the annual general meeting notice that if the proposed dividend recommended by the directors is approved by members, the dividend will be payable on Friday, May 23, 2025. The elephant-branded financial services group…

BUA Cement Unmoved Despite Healthy Q1 Earnings BUA Cement Plc’s market value remained unchanged despite its strong earnings performance in the first quarter of 2025.  There was no market-related reaction after the cement company filed its first quarter earnings release, keeping its price at N83.7. One of the members of Nigeria’s cement oligarchy has N2.834 trillion in market value, spread over its 33.864 billion shares outstanding. The cement company is, however, strapped to its founder’s neck. The shareholding structure reveals that its founder, Abdul Samad Rabiu, and his company, BUA Industries Limited, own 95.78% of the cement company’s outstanding shares…

Excess Liquidity in Banking System Keeps Rates in Check Interbank rates close steady due to excess liquidity in the banking system. The size of funds available for money market operations remains hefty, and banks are leveraging it, pumping funds into the standing deposit facility of the Central Bank. The absence of funding pressure kept short-term benchmark interest rates movement in check, lowering banks’ borrowing from the CBN standing lending facility at a higher rate. At the beginning of the week, the interbank market remained liquid as a ₦259.7 billion FGN bond coupon bolstered the liquidity balance in the financial system,…

CBN Issues Update on Document Requirement for PAPSS Transactions The Central Bank of Nigeria (CBN) has announced a significant review of the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria. According to a statement by Hakama Sidi-Ali, CBN’s Acting Director, Corporate Communications Department, the initiative was part of CBN’s ongoing commitment to foster seamless intra-African trade and financial inclusion. Sidi-Ali said that it would also boost operational efficiency for Nigerians engaging in cross-border payments within Africa. She said that the initiative was inaugurated by Afreximbank in partnership with the African Union and the…

GTCO, NB Plc Drive Intraday Gain in Equities Market Hefty market-valued stocks, including GTCO and Nigerian Breweries, among others, are driving the intraday rally in the equities segment of the Nigerian Exchange (NGX) on Monday. The market index has popped higher by 38 basis points, signaling a positive close in the stock market in the absence of sell-side actors taking over trading activities. GTCO experienced increased demand from offshore investors last week, and this boosted the orange-branded banking and financial services stocks. International Breweries Plc also rallied as investors anticipate a possible return to profitability in the first quarter of…

Transcorp Hotels Profit Rises to N5.046bn in Q1 Transcorp Hotels Plc grew profit by about 0.6% year on year to N5.046 billion in the first quarter of 2025, its unaudited financial statement submitted on the Nigerian Exchange revealed. Details from the results showed that profit rose minisculely by about 0.6% in 12 months to close at N5.046 billion compared with N5.016 billion in the comparable period in Q1-2024. The hospitality company reported a spike in revenue, up by 52.2% year on year from N13.80 billion in Q1-2024 to N21.005 billion at the end of Q1-2025. The top line was boosted…

Fitch Upgrades Kaduna, Lagos, Kogi, Oyo Credit Ratings Fitch Ratings has upgraded Kaduna, Lagos, Kogi, and Oyo states long-term foreign- and local-currency issuer default ratings (IDRs) or credit ratings to ‘B’ from ‘B-‘ with a stable outlook. In a rating note, Fitch said the upgrade of Kaduna, Kogi, Lagos, and Oyo follows the upgrade of Nigeria to ‘B.’.   “We consider the federal government’s role to be predominant in intergovernmental relations, as it controls the equalisation mechanism enacted through a system of transfers to states”. Fitch’s revised rating case on these four states includes updated macro data. They envisage steeper…