Author: Marketforces Africa

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. 

Oando Energy Falls by 10% over Sell Pressure Oando Energy Plc market valuation has dropped further due to sustained sell pressure on the energy stock in the local bourse. The company lost about N91 billion of its market value in the just concluded week due to selloffs. Since reversed trade on Oando Plc started, the company has lost more than 36% of its market value in the stock market. According to data from the Nigerian Exchange, the dual-listed energy company fell by 10% week on week as investors’ sentiment reversed from the previous trend. Analysts noted profit-taking activities became the…

The average yield on Nigerian bonds declined as investors sold down their holdings ahead of the Debt Management Office (DMO) primary market auction today.

Nigerian Treasury Bills Yield Surpassed 25% Ahead of Auction The average yield on Nigerian Treasury bills surpassed 25% in the secondary market as a tight liquidity balance in the banking system spurred selloffs. Due to the headline inflation rate surge, the negative interest yield on fixed income assets has widened. After the benchmark interest rate was adjusted to 27.25%, inflation has surged to 33.88%, with the average real return settling at 6.63% from less than 5% during the disinflation period. As investors weighted the new dynamics brought forward by the consumer price index, analysts have projected a further rate hike…

The Nigerian naira gained N26.62 against the US dollar in the official foreign exchange market as the Central Bank of Nigeria (CBN) strengthened the supply side. The local currency has seen an increase in demand in a market with low inflows across to satisfy an eligible requisitions.

MTN Nigeria Communications PLC has successfully raised more than N75 billion from the debt capital market, the telecommunications company told the Nigerian Exchange Limited and the investing public.