Author: Marketforces Africa

SA Major Banks to Expand Loss-Absorbing Capacity from 2026 –Fitch South Africa’s domestic systemically important banks (D-SIBs) are set to increase their loss-absorbing capacity by issuing new loss-absorbing debt (FLAC) from 2026, Fitch Ratings says in a new report. Recall that the South African Reserve Bank (SARB) recently finalised the prudential standard on a new loss absorbing debt class (FLAC), which is being implemented as part of the resolution framework for financial institutions, adopted in 2023. FLAC is designated for loss absorption and conversion to regulatory capital during bank resolution. It ranks senior to shareholders’ equity and other regulatory capital…

Yield Slides on Post Auction Demand for Nigerian Treasury Bills The average yield on Nigerian Treasury Bills has fallen further due to latest round of sharp buying in the secondary market. Trading activities opened on a bullish note as unmet bids from the Central Bank of Nigeria (CBN) primary market auction on Wednesday filtered into the secondary market. Investors take their bets to the secondary market after their bids failed at the main auction, driving the yield on naira asset lower on the day. However, activity levels warned midway through the session following the release of a revised auction calendar,…

Money Market Rates Steady Amidst Widening Banking Deficit Money market rates closed steadied amidst widening deficit in the banking system. The liquidity levels in the money market deteriorated further, plunging deeper into negative territory on Thursday. This happened after the settlement of ₦516.59 billion for Nigerian Treasury bills auction sold to investors, and inflows from matured bills at the same time. The Nigerian Interbank Offered Rate (NIBOR) rose across all tenors, indicating tight liquidity conditions in the banking system. Data from the FMDQ platform confirmed that interbank rates remained high, with the Overnight Policy Rate (OPR) and Overnight Rate (O/N)…

Naira Mixed as CBN Pumps US Dollars into FX Market The Nigerian local currency, the naira, traded mixed against the US dollar in the official window and parallel market following a fresh foreign currency injection by the supply side actors. The exchange rate closed at N1538.68 per US dollar, unchanged from the previous trading session as the Central Bank of Nigeria (CBN) stemmed the negative tide against the local currency with FX sales to authorised dealer banks. However, the spot FX rate at the parallel market worsened to N1,590 in the parallel on the back of tight weekly supply of…

Oando Edges Higher Slightly after Refinery Win Oando Plc has seen a small gain in the equities market after the indigenous energy company was announced as the preferred bidder for Trinidad and Tobago Refinery. Data from the Nigerian Exchange, NGX, showed that Oando’s market value of Oando Plc increased to N658.864 billion on Thursday as 1.379 million shares valued at N73.439 million were traded in the local bourse. Its unit price increased slightly to N53, which is more than 46% discount to 52-week high of N98.4 on the Exchange. Stock analysts see strong upside potential as the company’s earnings capacity…

Prestige Assurance Dips Slightly to N13.78 Billion Prestige Assurance Plc.’s 13.252 billion shares outstanding were priced at N13.78 billion on the Nigerian Exchange as selloff triggered a slide reduction in its market value. Its net asset was valued at N18.563 billion at the end of financial year 2024, according to its unaudited report, up b6 16% year on year from N15.949 billion in 2023. Ticker: PRESTIGE dipped by 96 basis points or 0.96% to ₦1.03, from N1.07 in the previous day as about 755,000 units valued at N786,506 exchange hands. The positive price movement comes after a series of fluctuations…

Regency Alliance Insurance Climbs by 3.2% to N7.8bn Regency Alliance Insurance Plc.’s 12 billion shares outstanding were price higher by 3.17% to N7.8 billion on the Nigerian Exchange, NGX, on Thursday. Details from the local bourse showed that the insurance company’s share price inched higher to 65 kobo as investors sentiment improved. This marks a rise from yesterday’s closing price reflecting a 3.17% increase from the previous close of ₦0.63. Despite the recent uptick, the stock is still 38.10% below its 52-week high, indicating that investors are carefully evaluating the company’s growth potential before pushing the price higher. Its market…

FG Upgrades Borno Airport to International Status – Minister Festus Keyamo, Minister of Aviation and Aerospace Development, says the Federal Government has officially upgraded the Muhammadu Buhari Airport, Maiduguri, Borno to a full-fledged international status. Keyamo disclosed this at the 2025 Ministerial Press Briefing Series, organised by the Federal Ministry of Information and National Orientation. He said such development would increase international flight schedules across the country and improve interconnectivity between Nigeria and other countries. The minister said the ministry had achieved a lot including performing the foundation laying ceremony for the commencement of the Abia Airport project recently. He…

Naira Gasps for Breath as US Dollar Demand Surges Reflecting a need for stronger FX support, the naira continues to gasp for breath across foreign exchange markets due to massive demand for the US dollar seen in the currencies market lately. The exchange rate is quoted at N1600 per US dollar in the parallel market this morning, according to channel check, losing N20 already on the day after closing at N1580 on Wednesday. The naira has skidded to N1538 at the official window even with the Central Bank intervention, suggesting that demand pressure had built up sharply. Reversing the previous…

Oil Slips amidst Peace Talks, Rising OPEC Output Oil prices slipped as the U.S. continues to broker peace between Russia and Ukraine and report that the Organisation of Petroleum Exporting Countries (OPEC) gradually increased output. The commodity market reacted to US President Donald Trump’s 25% tariff on steel and aluminium imports, which took effect. Brent crude decreased by 0.19% trading at $70.56 per barrel, down from $70.70 at the close of the previous session. The US benchmark West Texas Intermediate fell by 0.05%, settling at $67.40 per barrel, compared to its prior session close of $67.44. OPEC crude oil production…