Author: Marketforces Africa

US Dollar Declines against Trading Partners as Rally Loses Steam The US dollar fell against its major trading partners early Monday to start a return to a more normal schedule after two holiday weeks. The dollar could lose some momentum this week as a return of normal market conditions allows for some reconciliation with slightly lower rates, ING analyst Francesco Pesole said on Monday. However, analysts added that the proximity to Trump’s inauguration and the strong underlying narrative of a hawkish Fed may well keep any USD correction short-lived. Fed Governor Adriana Kugler said on Saturday that the Federal Open…

The average yield on Nigerian Treasury bills dipped to approximately 25.6% in the secondary market despite quite a trading session at the beginning of the New Year. Trading volumes remained low as most market participants have yet to resume activities for the year fully, according to fixed income market analysts’ notes.

Interbank Rates Rise as Funding Pressures Weigh on Liquidity Signature bonus, Remita inflows, and government contractor payments failed to tame the interbank rates movement last week. Interbank rates increased at the close of trading activities in the money market as a result of higher funding requests on liquidity balance in the financial system. The short-term benchmark interest rates rose on account of strain in financial liquidity in the money market last week. Market analysts explained that rates are more likely to decline in the new week due to a positive liquidity close in the money market in the absence of…

Sovereign Trust Jumps by 45% as Investors Bet on Insurance Stocks Sovereign Trust Insurance Plc jumped by more than 45% as insurance stocks get popular among equities investors in the Nigerian market, details from its weekly trading performance revealed. Insurance stocks were generally low priced in the stock market. The latest, which shifted the insurance index higher by 26.91%, could kickstart a new investment story in the segment, analysts said. Details from the Nigerian Exchange showed that the penny stock jerked up significantly ahead of the fourth quarter of the financial year 2024 earnings release. Last week, its share price…

2025 Budget’ll Revamp Economy, TMSG Assures Nigerians The Tinubu Media Support Group (TMSG) has described the 2025 budget proposal of N47.9 trillion by President Bola Tinubu as a bold step towards rejigging the economy. The group said this in a statement signed by Mr Emeka Nwankpan and Mr Dapo Okubanjo,its Chairman and Secretary, respectively, on Sunday in Abuja. It said it was heartwarming that infrastructure development, social services, and defence got the lion’s share of the expenditure plan. “The first thing that caught the attention of many in the 2025 budget is that it is an ambitious one that is…

Equities Investors Gain N1.25T as NGX Rerates Insurance Stocks The Nigerian Exchange (NGX) grew by N1.25 trillion during a short trading session in a rally boosted by demand for insurance stocks. The market opened positively with the All-Share Index (ASI) recording a strong 1.42% week-on-week gain to close at 103,586.33 points. This remarkable start to the year reflects renewed investor confidence and optimism, driven by heightened position-taking in stocks with robust fundamentals, Cowry Asset Limited said in a note. Stockbrokers explained that the market’s upbeat tone builds on its impressive performance in 2024, during which it achieved a 38% annual…

E-Tranzact Targets N364.759mn Profit in Q1 Nigeria’s leading payment and switching company, E-Tranzact International Plc, has estimated about N365 million in profit after tax for the first quarter of the financial year 2025, details from its earnings forecast submitted on the Nigerian Exchange showed. The company expects revenue to reach N2.204 billion in the first three months of operation in the current year. Its costs of sales is projected to settle at N291.458 million in the same period. Due to this, gross profit is projected to settle at N1.913 billion in the first three months of operation in the financial year…

The US dollar fell against its major trading partners Friday ahead of the release of the Institute for Supply Management’s manufacturing December. Traders have begun to price in Fed rates cut for 2025, weighing on US dollar index after initial rally.

10-Year U.S Treasury Yield Settles Below 4.6% The 10-year yield cleared at 4.596% on Friday, the largest one-week yield decline since Friday, Dec. 6, 2024. Earlier on the day, the yield on the 10-year US Treasury note was steady above the 4.57% level after reaching the eight-month high of 4.65% in December. The yield held over 50 basis points increase from 2024 as strong economic data backed the Federal Open Market Committee’s (FOMC’s) signal that rates should remain high this year. Yields were down slightly before the Institute of Supply Management purchasing managers index surprised to the upside by gaining…

Top 10 Companies Stocks with Abnormal Returns in 2024 The Nigerian Exchange top 10 equities performers led Juli, Sunu Assurance, and Oando offered shareholders unbeatable returns on investment in 2024. In total, there were 10 listed companies whose share price appreciation beats the Nigerian Exchange’s 36.75% annual return. It was a great year for equities investors as these stock prices reacted positively to the economic dimensions. Imagine a N1 million investment in Juli Plc in January 2023 when its share price was 59 kobo. This would have translated to about 1.7 million shares in the food and drug company. At…