Author: Marketforces Africa

Fitch Downgrades Mozambique Rating to Junk Grade Fitch Ratings has downgraded Mozambique’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘CCC+’, reflecting the country’s financing strains, domestic debt service risk and wide deficit. According to the rating note, unresolved political and social unrest have hit the fiscal position at a time of elevated government financing needs and uncertainty over external financing. The rating note explained that post-election protests have dented government revenues and economic activity and complicate fiscal adjustment. Switch auctions have been used to extend domestic maturities, but large financing needs pose a significant vulnerability, according to Fitch…

AFC Raises $400m in Shariah-compliant Facility to Fund Infrastructure Africa Finance Corporation (AFC) has successfully closed a US$400 million Shariah-compliant commodity Murabaha facility, marking its strategic return to the Islamic finance market for the first time in eight years. This milestone reflects AFC’s commitment to diversifying funding sources while expanding access to ethical and sustainable financing to meet Africa’s infrastructure needs, an official statement reads. Initially launched at US$300 million, the facility was upsized to US$400 million as strong investor demand resulted in a 47% oversubscription. The transaction attracted participation from eleven leading Islamic financial institutions, including new AFC partnerships…

FG Approves Concession of Taraba Agro-Allied Airport The Federal Executive Council (FEC) has approved the concession of the Kashimbila Integrated Cargo/Agro-Allied Airport in Taraba, under a public-private partnership (PPP) arrangement. A statement issued in Abuja on Friday by Ifeanyi Nwoko, Acting Head, Media and Publicity, Infrastructure Concession Regulatory Commission (ICRC), said that the projects were approved under the regulatory guidance of the ICRC. The statement said the project cuts across agriculture, water resources, and aviation sectors. It said that on one hand, it featured the upgrade of an airstrip in Kashimbilla to a Cargo/Agro-Allied Airport. “On the other hand, it…

China Foreign Reserves Increased to $3.2 Trillion

Oil Prices Increase amidst Ongoing Trade Tensions Oil prices increased in the global commodity market on Friday amidst ongoing trade tensions triggered by U.S President Donald Trump’s tariff threats. The crude oil complex rebounded after three weeks of decline, driven by expectations of further US Federal Reserve (Fed) rate cuts, though ongoing tariff uncertainties, a strong US dollar, and rising jobless claims capped gains. The U.S. and China trade war have raised fears of a global economic slowdown, potentially weakening oil demand. Despite occasional upside price movements, the overall outlook remains cautious, with economic risks and trade uncertainties limiting significant…

UBA Group Climbs to N1.3trn Ahead of Earnings The United Bank for Africa (UBA) Group Plc market value has increased to N1.3 trillion in the equities segment of the Nigerian Exchange (NGX) on the back of a sustained rally. The pan-African financial services group share price rose near record high in 12 months, according to data from the Nigerian Exchange, settling at N38 on Thursday. More than 20 million shares were traded at a total value of N775.568 million in the local bourse as investors’ appetite for diversified banking group’s stock increased. After a 66 basis point increase in the…

Yield Shrinks as Investors Go After New Treasury Bills The average yield on Nigerian Treasury bills shrank by 57 basis points to 22.60%, two investment firms told investors in a note. The yield declined as investors who lost their bids went after the Treasury bills auction issued at the primary market on Wednesday. Market participants showed interest in the newly issued one-year bills amidst its lower spot rate pricing at the auction. Generally, fixed income market analysts said the heightened investor demand has continued to drag the yield curve low amidst negative real returns in the debt market. With the…

The short-term benchmark interest rates trended higher in the money market as banks faced liquidity constraints that kept funding rates elevated on the back of the settlement for the Nigerian Treasury bills (NTB) auction.

The Nigerian naira exchange rate dropped to N1,500 per U.S. dollar at the official currency market on Thursday, marking the fourth successive price depreciation due to FX liquidity shortfall.

Equities Investors Gain N65bn as Financial Stocks Rally Equities investors trading highs and lows in the Nigerian Exchange, NGX, saw more than N65 billion in gain as financial stocks rallied. Both insurance and banking names saw positive price appreciation with support from the consumer goods and industrial indices. The Nigerian equities market sustained its bullish momentum for the fourth consecutive trading session, driven by gains in ETI (2.96%), INTBREW (1.89%), UCAP (1.55%), STERLINGNG (1.18%), TRANSCORP (1.13%), FIDELITYBK (1.02%), UBA (0.66%), ZENITHBANK (0.60%), OANDO (0.43%), and WAPCO (0.35%), among others. As a result, the All Share Index (ASI) edged up by…