Author: Marketforces Africa

Nigerian Bonds Yield Falls Below 19% after Auction The average benchmark yield on the Federal Government of Nigeria (FGN) declined by 22 basis points (bps) to settle at 18.90% in the secondary market due to the post-auction rally experienced on Tuesday. Trading activities heightened in the bond market, driven by post-auction demand from investors who missed out and turned to the secondary market to fill their lost orders, AIICO Capital Limited said. The Debt Management Office, DMO, offered investors N350 billion, divided between the April 2029 (₦200 billion) and February 2031 (₦150 billion) papers. The authority cancelled 10-Year bond re-issued…

Yield on Nigerian Treasury Bills Falls to 20% As demand increased, the average yield on Nigerian Treasury bills fell slightly in the secondary market to settle at 20%, analysts said in their separate investors’ notes. Demand for naira assets continued to gain steam as the benchmark interest rate surpassed the inflation rate, with investors capitalizing on real returns in the financial markets. Fixed-interest securities asset holders are capitalizing on positive real returns in the debt market to increase their portfolios amidst the market’s expectation of a policy shift. A slew of fixed income analysts have predicted that yield will drop…

NNPC Shipping, Partners Unveil New Joint Venture The Nigerian National Petroleum Company (NNPC) Shipping, Stena Bulk, and Caverton Marine Ltd. have  signed a new Joint Venture (JV) that will transform the country’s maritime transportation. A statement by Mr Olufemi Soneye, the Chief Corporate Communications Officer, NNPC Ltd., on Tuesday said the joint venture would create a new company, aimed at providing top quality, reliable and efficient maritime transport. The agreement, signed in London last week, aims to create a new tanker operation serving Nigeria and West Africa’s crude oil, refined product and Liquefied Natural Gas (LNG) regional and global shipping…

FCCPC Summons MultiChoice over Price Hike The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to justify its proposed subscription price increase, set to take effect on March 1. MultiChoice’s summon is contained in a statement issued by FCCPC’s Director, Corporate Affairs, Mr Ondaje Ijagwu, in Abuja on Tuesday. Ijagwu said the commission had directed the Chief Executive Officer (CEO) of MultiChoice Nigeria to attend an investigative hearing at the commission’s headquarters on Thursday. He said the action followed MultiChoice’s formal notification of the price adjustment, which raised concerns about recurrent unilateral price hike. He said that…

Naira Rises as CBN Influences Rates Direction with $107m The naira gained across foreign exchange markets following the Central Bank of Nigeria (CBN) sustained its US dollar sales to authorized dealer banks. The local currency has continued to trade steady against the US dollar, British pound, and Euro, reflecting improved liquidity and foreign investors’ confidence. International oil companies, exporters, non-bank corporates and inflows from individuals boosted the total US dollar volume available in the supply side. According to information obtained from the FMDQ platform, the spot FX rate appreciated by 0.15% to close at N1,501.42 per US dollar as supply…

Nigerian Exchange Shrinks as Equities Investors Lose N215bn The Nigerian Exchange, NGX, shrank by more than N215 billion as bears hold sway in the local bourse.  The sell-offs have persisted for days as interest rates surpassed inflation. As sell pressures gathered steam, year-to-date return moderated while key market performance indicators declined by 0.34%.  Stockbrokers said the market’s negative performance was driven by profit-taking activities across major market sectors. As a result, investors’ wealth shrank by ₦516 billion over four successive days, reflecting the overall market downturn.  The Nigerian Exchange All-Share Index decreased by 345.36 basis points today, representing a drop…

Nigeria’s economy, as measured by gross domestic product (GDP), grew by 3.84% year on year in the fourth quarter of 2024, data released by the statistics office revealed. Real GDP surged by 42 basis points from 3.46% year on year growth posted in the third quarter of 2024, the National Bureau of Statistics (NBS) reported.

Banking Stocks Selloffs Drive Intraday Loss in Equities Market The Nigerian Exchange, NGX Equities market index, slipped during the intraday trading session as investors dumped banking stocks.  The massive selloffs caused banking names market value to fall below their respective opening price. A switch in investors sentiment, which followed the rebased consumer price index and subsequent monetary policy rate hikes slowdown, has continued to linger.  The local bourse closed negative on Monday, losing N231 billion as the sectorial performance shrank. At mid-day, the NGX All Share Index declined by 0.15%, reflecting a bearish market sentiment, according to Alpha Morgan Capital…

LCCI, CFTC Partner for 137th Canton Fair The Lagos Chamber of Commerce and Industry (LCCI) has partnered with the China Foreign Trade Centre (CFTC) for the 137th Canton Fair to strengthen trade relations and explore new markets. LCCI President, Mr Gabriel Idahosa, announced this during a news conference on Monday in Lagos. He stated that the fair, scheduled from April 15 to May 4 in Guangzhou, China, would connect Nigerian businesses, manufacturers, and producers with their Chinese counterparts. Idahosa expressed confidence that the partnership would create new market opportunities and foster stronger economic ties. President of the Manufacturers Association of…

Nigeria Turns Down Bids over Excess Demand for Local Bonds The Debt Management Office, DMO, recorded excess demand for Federal Government of Nigerian (FGN) bonds at its monthly primary market auction on Monday. Nigeria’s debt agency conducted a primary market auction on Monday where it offered N350 billion worth of local bonds to investors. The amount DMO sought to raise from 5-year and 7-year bonds were N200 billion and N150 billion following announcement of cancellation of N100 billion worth of 10-Year bonds. The auction results revealed that investors staked more than N1.632 trillion on the amount offer amidst increasing appetite…