Author: Marketforces Africa

Naira Falls Across FX Markets as US Dollar Shortage Persists The naira fell off track in the foreign exchange (FX) market due to sustained US dollar shortfalls and rising demand for international payments. The naira depreciated by 0.19%, closing at N1,512.58 per dollar, according to FX spot data from the FMDQ platform. The Nigerian Foreign Exchange Market (NFEM) continued to experience strong demand for foreign currency, resulting in a mostly bid market. However, there was a noticeable increase in dollar liquidity today, AIICO Capital Limited said, noting that most transactions took place within the range of $/n1,450.00 to $/N1,520.00. Similarly,…

Oando Falls as Investors Trade Unusual Volume Oando Plc lost more than 8% in the stock market following an unusual trade volume valued at over N1.1 billion that exchanged hands in the equities market on Monday. The indigenous oil company’s share price fell to N64.1, according to data obtained from the Nigerian Exchange, NGX, from an opening price of N70. The huge share volume traded in the equities market skewed to the sell side, causing Oando Plc market value to decline by 8.43% on the day. At the close of the trading session, Oando’s 12.431 billion outstanding shares were priced…

Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO Equities investors trading highs and lows at the Nigerian Exchange, NGX, platform lost about N73 billion due to negative price movements across key sectorial indexes. Sell pressures were observed on Monday as investors took profit amidst corporate earnings releases. This happened just after the Nigerian Exchange, NGX, reported a N1.83 trillion gain last week. Hence, year-to-date returns moderated ahead of inflation data for January. Also, key market performance indicators declined by 0.11% due to strong sell-offs. Equities investors sell down interest in VFDGROUP, OANDO, ETERNA, and PZ after price upticks…

Tensions with U.S. Pose Risk to South Africa’s Growth Recovery –Moody’s Tensions with U.S pose risk to South Africa’s growth recovery, Moody’s said in a recent commentary note after President Donald Trump signed an executive order (EO) freezing financial aid to South Africa early in February. Moody’s noted that the order was prompted by the new US administration’s views on recent land expropriation legislation as well as South Africa’s stance towards Israel. According to Moody’s, the amount of aid that South Africa receives from the US is limited, and therefore the executive orders is unlikely to significantly impact on South…

Ratings Withdrawal: We Ended Our Contract With Fitch -Dangote Dangote Group has revealed that it has officially ended contract with Fitch ratings for the company’s credit assessment. Reacting to Fitch Ratings withdrawal report, Anthony Chiejiena, the head of the group’s corporate communciation commented that, “We ended our contract with Fitch Ratings, we did not renew it”. Last week Fitch Ratings announced withdrawal of Dangote Industries Limited’s (Dangote) National Long-Term Rating and senior unsecured rating of ‘B+ (nga)’. However, the global rating agency said it maintaining them on Rating Watch Negative (RWN), which reflect uncertainty related to the group’s ability to…

It is raining red in the equities segment of the Nigerian Exchange, NGX, during early trading hours with strong price decline in Oando, Jaiz Bank Plc and others as investors await the release of inflation figure.

Equities Analysts Bearish on Wema Bank after 32% Return In 2025, Wema Bank Plc share has gained about 32%, and analysts are of the view the stock is already overpriced as per Atlass Portfolios Limited sell recommendation or have limited upside potential as per Apel Asset Limited estimate. In its stock market recommendation, Apel Asset Limited told investors that Wema Bank upside is less than 5%, suggesting near peak price before profit takings. Apel Asset Limited estimated fair value of Wema Bank Plc at N12.45 per share. The estimated price was slightly higher than the bank’s closing price of N12…

Nigeria Bonds Yield Falls as Demand for Naira Asset Rises The average yield on Nigerian government bonds declined as demand for naira assets continue to increase in the secondary market. The bond market recorded mixed activities with investors trimming and adding to portfolios in an efforts to optimise returns. Buying interests were observed at the short and mid segments of the curve, CardinalStone Limited said in a note, pointing particularly at increased demand for the APR 2029 (-75bps) and JUL 2030 (-19bps). The market exhibited a mixed trend throughout the week, initially leaning bearish with offers present across the curve.…

Oil Prices Rise Amidst Resumption of Iraq Export Oil prices saw moderate uptick in the global commodity market on Monday amidst talk of a potential restart in oil exports from Iraq’s Kurdistan region. Despite the downward pressure on oil prices through much of last week, the market still managed to eke out a small gain with Brent settling 0.11% higher on the week, ING says in a note.  Data showed that Brent crude price has increased by 0.2%, trading at $74.54 per barrel on Monday. Also, the US benchmark West Texas Intermediate (WTI) increased by 0.1%, reaching $70.67 per barrel,…

MTN Nigeria Posts Gain as Investors Anticipate Earnings Surprise MTN Nigeria Plc posted further gain in the equities market as investors anticipate the telecom earnings would improve in the fourth quarter of its financial year 2024. The telecom company acted decisively on issues that affected its earnings in the first three quarter of 2024. The company’s actions after its poor earnings has boosted sentiment, according to analysts amidst negative shareholders’ funds. MTN is expected to boost its total equiy with long term sources of income. According to analysts, the telecom company met its working capital needs following series of commercial…