Author: Marketforces Africa

Treasury Bills Yield Falls by 19bps after CBN Rejects Bids The average yield on Nigerian Treasury bills fell by 19 basis points in the secondary market, a day after the Central Bank rejected investors bids at the main auction. The CBN opened N400 billion worth of Nigerian Treasury bills for subscription on Wednesday, but investors subscription level settled at N1.54 trillion, reflecting increased demand for the naira assets. The Apex Bank ultimately sold ₦714.38 billion, with stop rates declining across tenors: 91-day papers fell 50bps to 18.00%, 182-day dropped 100bps to 18.50%, and 364-day edged 3bps lower to 19.60%, AIICO…

Money Market Rates Mixed as Banks Put Excess Cash with CBN The short-term benchmark interest rates diverged as deposit money banks with excess cash pumped the funds into the Central Bank of Nigeria (CBN) standing deposit facility (SDF). Sequences of inflows into the money market have reduced pressure on the financial system, and this has reversed banks borrowing from the CBN to meet funding needs. Hence, rates movements have been put in check over the recent past weeks in the absence of pressures on the financial system’s liquidity levels. On Thursday, system liquidity remained largely robust despite a net Nigerian…

Exchange Rates Gap Crashes as NFEM Rate Closed at N1601/$ The naira exchange rate gap collapsed as the local currency closed at N1601.82 per US dollar in the Nigerian Foreign Exchange Market (NFEM) on the back of sustained Central Bank support. The Apex Bank keeps selling US dollars to banks to keep liquidity strong and volatility in check-—to achieve a stable exchange rate. CBN FX spot data obtained showed that the naira appreciated by 0.03% in the official window, closing at N1,601.82 per dollar.  Similarly, the naira ended the day at N1,605 per dollar in the parallel market on the…

NGX Expands as Equities Investors Wealth Grows by N505bn The Nigerian Exchange (NGX) market capitalisation expanded as equities investors portfolio value grew by N505 billion—supported by bargain hunting and listing of new shares. The stock market sustained its bullish momentum to close today’s trading session on a positive note, as key performance indicators showed mixed outcomes. Equities market index rose by 0.75%, adding 790.59 basis points to close at 106,074.26. The market value of listed Nigerian stocks increased by ₦508.15 billion to settle at ₦66.67 trillion. Stockbrokers attribute the mixed indicators to the Listing by Introduction of Legend Internet Plc’s,…

USD Rallies against GBP, EUR as Market Concerns Ease The US dollar (USD) rose against its major trading partners, the Great Britain pound (GBP) and the euro currency (EUR), early Thursday ahead of a full schedule of data releases. The market’s global trade war concerns began to ease after President Donald Trump reversed his stance on China tariffs. Weekly initial jobless claims and durable goods orders, and the Chicago Federal Reserve’s national index, both for March, are all due to be released. The US dollar has rebounded from its lowest levels in three years amid easing concerns about the independence…

Oil Prices Increase Ahead of OPEC+ Output Boost Oil prices increased in the global commodity market on Thursday ahead of an output surge from the Organisation of Petroleum Exporting Countries and allied members (OPEC+) seeking to accelerate crude supply starting from May. Several OPEC+ members want the group to approve another accelerated oil output increase for June at a meeting, according to Reuters sources. Brent crude futures rose 8 cents, or 0.12%, to $66.20 a barrel, while US West Texas Intermediate crude rose 9 cents, or 0.14%, to $62.36 a barrel. Prices fell 2% during the previous trading session after…

Nigeria’s US Dollar Bond Yield Dips by 46bps The average yield on Nigerian US dollar bonds declined by 46 basis points (bps) on the back of an improved sentiment in the international market amidst global market uncertainties. Foreign portfolio investors’ interest in Nigeria’s sovereign Eurobond increased, with buying interest across the curve, thus reducing the country external borrowing costs. Investment experts said African Eurobonds rallied decisively after President Trump’s dual reassurances – first declaring he had ‘no intention’ of dismissing Fed Chair Powell, then signalling potential tariff reductions on Chinese imports. These comments alleviated concerns about central bank independence and…

Interbank Rates Mixed on Surplus Banking System Liquidity Interbank rates were mixed as liquidity balance in the financial system remained substantial to meet banks’ and other financial service players funding demand. Data from the FMDQ platform revealed that the short-term interest rates closed around 26% in the absence of significant funding pressures in the money market on Wednesday. Banks borrowing activities at the Central Bank of Nigeria’s (CBN) standing lending facility (SLF) also slowed, while there have been significant inflows channeled into the deposit facility. Hence, Nigerian Interbank Offered Rate (NIBOR) declined across all tenors, indicating improved liquidity conditions in…

US Dollar Rises Ahead of S&P Flash PMI The US dollar rose against its major trading partners—the British pound, euro, loonie, and Japanese yen—early Wednesday ahead of another busy day of economic data releases and Federal Reserve speeches. The S&P Global flash manufacturing and services purchasing managers’ index estimates for April are due to be released. A quick summary of foreign exchange activity showed that USDEUR fell to 1.1402 from 1.1421 at the Tuesday US close and 1.1494 at the same time Tuesday morning.  The Eurozone’s manufacturing PMI rose slightly in April, while services PMI declined below the breakeven point,…

Nigerian Exchange Index Rises as Equities Investors Gain N321bn The Nigerian Exchange (NGX) All-Share Index advanced by 49 basis points on Tuesday as equities investors saw N321 billion gain from the latest rally. The equities market resumed trading in positive territory after the public holiday, as key performance indicators climbed by 0.49%. The local bourse picked up from where it left off before the break, driven by bargain hunting in recently depreciated medium- and large-cap stocks, such as INTBREW, JAPAULGOLD, UCAP, UBA, among others. The Nigerian Exchange All-Share Index added 511.17 basis points, reflecting a 0.49% increase to close at…