Author: Marketforces Africa

Oil Prices Decline as U.S Stockpiles Surpass Target Oil prices fell in the global commodities market on Thursday following an increase in U.S. crude oil inventories. A surge in US stockpiles and ongoing efforts for a Russia-Ukraine peace deal were offset by concerns over supply. Brent crude fell by 0.02%, trading at $75.79 per barrel while the US benchmark West Texas Intermediate (WTI) decreased by 0.06%, settling at $72.11 per barrel. The American Petroleum Institute (API) reported that US commercial crude oil stocks increased by 3.3 million barrels last week, surpassing market expectations of a 2.2 million barrel increase. The…

Interbank liquidity worsened further, sinking deeper into negative territory, highlighting the ongoing liquidity crunch in the financial system. Hence, money market rates were further pressured as banks faced a huge liquidity deficit totalling N1.58 trillion, up from N1.064 trillion the previous day.

Investors Step up Bonds Buying on Inflation Protected Return Improved confidence and positive real return on investment drove buying momentum in the bond secondary market on Wednesday. Despite huge Treasury bill subscriptions of more than N2.4 trillion, investors also increased their respective positions in the secondary market for Nigerian bonds. The rebased exercise has upturned negative interest yield on fixed income assets in the Nigerian debt market. Based on 24,48% inflation figure and 27.50% benchmark interest rate, asset managers, pension fund administrators, and local banks that invested in bonds are enjoying a positive return of 3.20%. Traders said fixed interest…

Naira Sees Market Wide Gains, FX Spread Falls to N26 The naira has fun with the United States (U.S.) dollar across the foreign exchange markets, thanks to FX interventions, and foreign investors heightened confidence on Nigerian economy. Today, the naira registered an additional gain against the U.S. dollar in the foreign exchange market amidst sufficient FX liquidity in the official window. According to FMDQ spot FX data, the local currency appreciated by 0.05% in the official window, closing at ₦1,509.53 per US dollar from N1,510.33. The latest recovery in money pricing is bolstered by sustained intervention by the Central Bank…

National Assembly Backs Recapitalisation of Federal Mortgage Bank The National Assembly says its support for the Federal Mortgage Bank of Nigeria’s (FMBN) recapitalisation efforts aims to enhance the bank’s capacity to deliver affordable housing and reduce the nation’s housing deficit. Sen. Aminu Tambuwal, Chairman of the Senate Committee on Lands, Housing, and Urban Development, stated this on Wednesday in Lagos during a top management housing sector retreat. The event, organised by the Federal Ministry of Housing and Urban Development, aimed to deliberate on strategies for actualising the Renewed Hope Agenda for Housing and Urban Development. Tambuwal said the Senate would…

Equities investors gained about N505 billion in the stock market as BUA Foods, Eterna Plc, and others recorded positive price movements. Data from the Nigerian Exchange showed year-to-date return advanced amidst a sharp decline in headline inflation.

US Dollar Rises ahead of FOMC Minutes The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, ahead of the release of housing starts data for January and the New York Federal Reserve’s services index reading for February. The dollar continued its rebound yesterday, although early trading today is favouring some momentum in the yen and Antipodeans, ING said in a note. Analysts said the markets will continue to carefully assess how close a truce in Ukraine is, and crucially at what conditions. Russia and the US have held bilateral discussions that…

Real Return Positive as Interest Rate Exceeds Inflation in Nigeria The fixed income market has taken a break from negative interest yield as the investment space turned green with positive real returns on government securities. Bonds and Treasury bills traders, including foreign investors’ participation in the OMO market, have started seeing positive interest yield on their funds. Real return on fixed interest securities has become 3.02% positive on the back of a lower inflation rate of 24.48% and a much higher benchmark interest rate of 27.50% ahead of the monetary policy meeting. Some analysts have projected a slowdown in monetary…

Oil Prices Jump as Ukraine Attacks Russian Facility Oil prices jumped in the global commodity market as Ukraine launched heavy attack against Russian oil stations.  The commodity prices adjusted due to concerns that cold weather in the US could disrupt production, while trade tariff concerns and uncertainty over US monetary policy continue to impact prices. Brent crude traded at $75.95 per barrel while the American benchmark West Texas Intermediate (WTI) traded at $72.26 per barrel. Russian Deputy Prime Minister Alexander Novak announced that Ukraine launched an unmanned aerial vehicle (UAV) attack on an oil pumping station belonging to the Caspian…

Treasury Bills Yield Shrinks Ahead of N700bn Auction The average yield on Nigerian Treasury bills fell below 22% in the secondary market ahead of auction. The bills market traded on a relatively quiet note with a mild bullish bias as market players assessed signals from the latest inflation report. Yields moderated slightly across the curve, particularly at the long end of the curve, due to buying momentum on naira assets, according to analysts notes reviewed by MarketForces Africa. The market experienced increased bullish momentum after the release of the highly anticipated rebased consumer price index figures for January 2025. The…