Author: Marketforces Africa

Investors who bought 364-day tenored Treasury bills at the Central Bank of Nigeria’s (CBN) primary market auction received a 50 basis point increase in the spot rate.

Liquidity: Interbank Rates Rise Sharply on FX, Bond Auction Debits Reversing its downward trend, interbank rates rose sharply over liquidity constraints in the financial system, caused by huge outflows. The liquidity shortfall at N330 billion deficit lifted the short-term benchmark interest rates by more than 600 basis points apiece. This left many small lenders in negative positions as analysts predict a rush to the CBN window to borrow funds. The market experienced debits relating to payments for the Debt Management Office’s (DMO) monthly bond auction. Likewise, the payment for FX auction sales to authorised dealer banks drained liquidity balance in…

The naira, Nigeria’s local currency, fell further against the dominant US dollar across foreign exchange markets in the absence of sufficient forex market intervention.

Champion Breweries Plans to Raise Additional Capital Champion Breweries Plc has announced a plan to hold an extraordinary general meeting of shareholders on December 4 at Oriental Hotels. The board of directors would be seeking shareholder approval to raise additional capital of up to N15 billion at the emergency meeting. In a regulatory filing submitted on the Nigerian Exchange, the beer-producing company said it will be seeking shareholders’ approval to undertake a capital raising exercise. The board seeks shareholders’ approval to issue up to 1,579,058,099 ordinary shares in the Nigerian and/or international capital markets. According to the company, the capital…

Fitch Affirms Bharti Airtel at ‘BBB-‘ With Stable Outlook Fitch Ratings has affirmed India-based Bharti Airtel Limited’s (Bharti) Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating at ‘BBB-‘ with a stable outlook. The stable outlook reflects Fitch’s expectation that Bharti’s EBITDA net leverage will improve amid strong earnings growth and a decline in capex. The rating note stated that Bharti’s rating is supported by its strong market position in the consolidating Indian mobile market. Bharti’s foreign-currency ratings cannot exceed India’s Country Ceiling (BBB-), which reflects the transfer and convertibility risks on foreign-currency obligations. “We would probably upgrade Bharti’s…

MTN Group Hosts High-level Delegation from Uganda MTN Group welcomed a high-level delegation from Uganda, led by Mr. James Makula, Chairperson of the National Start-up Technical Working Group, to its headquarters on Tuesday, 19 November 2024. The visit reflected MTN’s deep commitment to supporting the priorities of nation states by fostering partnerships that drive innovation, entrepreneurship, and regional collaboration. As part of a benchmarking mission to South Africa, the engagement focused on knowledge exchange and exploring strategies to leverage technology for socio-economic progress. Discussions centred on advancing Uganda’s National Start-up Policy and enhancing cross-border trade opportunities within the African Continental…

The UK is uniquely placed to partner with Nigeria to raise awareness and tackle emerging threats and cybersecurity challenges affecting both countries, says Mark Smithson, Country Director, UK’s Department for Business and Trade (DBT) in Nigeria.

The US dollar rose against its major trading partners early Wednesday before a quiet data schedule for the remainder of the day that includes only weekly petroleum stocks data.

Crude Oil Prices Rise as Russia-Ukraine War Escalates Prices of crude oil rose on Wednesday after Ukraine strike Russia with long-range weapons, first time since the war began. Reacting to increasing geopolitical tensions, commodities price increased across complex. Brent crude rose to $73.23 per barrel while The US benchmark West Texas Intermediate also increased to $69.42 per barrel, Tensions rose between Russia and Ukraine after international media reported that the Joe Biden administration granted Kiev permission to use long-range American weapons on Russian territory for a limited time. The Russian Ministry of Defense announced Tuesday that Ukraine attacked the Braynsk…

Trading activity in the secondary market for FGN bond stayed on a calmer note, causing the average yield to clip at 19.44%. With a widening inflation rate, the negative real return on Nigerian bond investment has increased to about 7%.