Author: Marketforces Africa

Treasury Bills Yield Eased to 24.29% Ahead of Auction The average yield on Nigerian Treasury bills decreased moderately due to activities of buy-side actors in the secondary market. Though traders said trading activities were mixed due to tight liquidity conditions in the financial system – some investors were seen taking positions while some selloffs were also noticed. With portfolio investors seeking to optimse returns, transactions conducted on Treasury bills were generally mixed as the Debt Management Office (DMO) prepared to launch its primary market auction on behalf of the monetary authority. The DMO will be offering about N610 billion across…

Money market rates diverged on the back of movement in liquidity balance in the financial system. The short-term benchmark interest rates mixed after inflows from matured OMO bills and swap inflows lifted the liquidity balance.

The naira reclaimed part of its lost exchange rate value in the official market as volume of US dollar volume transacted declined on the day. Spot data from the FMDQ platform showed the naira appreciated by 0.68%, closing at ₦1,678.93 per US dollar at the official market.

The Central Bank of Nigeria (CBN) has advised members of the public to be cautious of SWIFT Messages on foreign exchange remittances to their Nigerian bank accounts

The average yield on Nigeria’s sovereign Eurobonds yield has expanded near 10% base in the international market as inflation propelled riskoff sentiment triggered selloffs.

Interbank Rates Decline on Strong Liquidity Balance Interbank bank rates continue its downward trend in the money market on sufficient liquidity balance in the financial system. The short-term benchmark interest rates declined after the Debt Office monthly bond auction. Interbank rates are expected to take a 360-degree turn this week due to outflow relating to auction settlement. The market also expect midweek Treasury bill auction to drag liquidity downward. This week, FGN bond coupon worth N9.37 billion will boost the liquidity in the market. Also, additional inflows from OMO maturities worth N6.38 billion will provide additional cover for rates pricing…

The naira depreciated sharply at the Nigerian autonomous foreign exchange market (NAFEM) due to a deepening FX liquidity shortage and higher spot rate pricing.

Crude Oil Prices Rebound as U.S Drilling Slows  Oil prices gained slightly in the commodities market after falling sharply at the end of last week amid a broader risk-on sentiment. The booming geopolitical concerns have raised supply risk, while lower imports in China support bearish demand expectations. US drilling activities slowed while the World Bank predicts supply glut will drag prices lower in 2024 and 2025. ICE Brent was trading above US$71 per barrel while US WTI held above US$67 per barrel; in the early trading session today. However, the persistent worries over the clouded demand outlook in China and…

Aradel Rises by 10% as Employees Mop up Shares Aradel Holdings PLC recorded a 10% price appreciation on the Nigerian Exchange (NGX) as employees of the company began to mop up shares. This halted the oil company’s successive price depreciation in the equities market and lifted its value. A slew of stock market analysts are of the opinion that the oil company would recover from the downturn when its fourth quarter earnings berth and provide additional information about the future earnings stream, including the stock intrinsic value. The latest buy-side activities happened after the oil company’s influential shareholder reduced their…

Sell pressures initiated by equities investors knocked down the market value of VFD Group Plc by 10%, or N5.7 billion, on the Nigerian Exchange following its solid earnings growth.