Author: Marketforces Africa

The Nigerian Communication Commission, NCC, has directed MTN Nigeria, Airtel Africa and others to immediately reactivate lines that were affected by NIN-SIM

T-Bill Selloffs Lift Yield to 25.2% after Auction Rate Cut The average yield on the Nigerian Treasury Bill crossed 25% in the secondary market after rate adjustment. The primary market auction conducted last week saw mixed spot rates repricing across standard maturities. The market spot rates on Treasury bill sold to investors followed additional interest rate hike at the recently concluded policy committee meeting of the Central Bank. The auction results triggered selling rallies in the secondary market as investors started to dump naira assets amidst high inflation and interest rate tightening. Confirming the impact of changing market dynamics, traders…

Naira Trades at N2,061 to Pound Sterling in FX Market The Nigerian naira plunged deeply against the British pound sterling in the official window, according to data from the Central Bank.  The local currency saw market wide depreciation last week, despite additional FX sales to authorised dealer banks. The apex bank recently lauded the narrow spread in the foreign exchange market, saying the price discovery has successfully curbed arbitrage and speculation.  Other foreign currencies also swung as the naira lost ground against major primary market currency amidst liquidity challenges. In the parallel market, sterling was sold above N2,100 with currency…

Nigerian Exchange Sheds N1.32trn as Investors Exit Positions The equities market capitalisation of the Nigerian Exchange (NGX) fell by N1.32 trillion last week after minority shareholder selloffs in Dangote Cement Plc after a profit margin decline that affected non-controlling interest shareholders share of profit. Generally, the market temperature was weak after interest rate hike caught yield hungry investors attention, resulting to portfolio rebalancing amidst flood of earnings releases in the local bourse. As a result, the benchmark index lost 2.33% week-on-week to settle at 98,201.49 points, according to data from the local bourse. Consequently, the market capitalisation of the exchange…

Dangote Cement Loses N1.12trn as Market Reacts to Reduced Margin The Nigerian Exchange (NGX) priced down Dangote Cement Plc due to sell pressure on the company’s shares after the first half of 2024 unaudited financial statement was posted on the trading platform. Dangote Cement Plc grew net profit by 6.37% to N189.904 billion in the first half of 2024, the company’s unaudited financial statement reviewed by MarketForces Africa showed. While profit climbed, margin depressed by 8%, or 800 basis points, over 12 months. On the Nigerian Exchange, the cement company, which has steadied at N656.7 per share for months, made…

NGX Lost N1.1trn as Investors Dumped Dangote Cement Shares The Nigerian Exchange (NGX) spiraled downward, lost more than N1.1 trillion on Friday as shareholders exited their positions at Dangote Cement Plc following an earnings release. The Nigerian equity market closed trading activities for the week bearish, extending its losing streak to four consecutive trading days, according to stockbrokers. The All-Share Index fell by 1,955.47 basis points, representing a decrease of -1.95% to close at 98,201.49. The downward trend was a result of investors sell-offs in some medium and large-scale stocks. OANDO topped the advancers’ chart with a price appreciation of…

Naira Breaks Out Above N1600/$ in Official FX Market The Nigerian local currency, the naira, disappointed the bulls’ forecasts on Thursday as the exchange rate breakout after intermittent FX sales across currency markets. In the official market, the naira closed at ₦1,603.80 per dollar, a 1.08% depreciation from the previous close. The market witnessed elevated eligible demand for US dollar on Thursday. Exchange rate was kept below N1600 band last week, appreciated to N1500 on Monday due to US dollar sales to both informal, and parallel markets authorised FX dealers. FX liquidity in the currency market remained depressed despite apex…

Nigerian Exchange Dips by N118bn Despite Earnings Festival Equities investors on the Nigerian Exchange (NGX) saw their combined wealth nosedived due to rapid selloffs on banking tickers as listed companies flood the market with earnings releases. The domestic bourse closed in negative territory for the third day of the week as investors anticipate yield repricing in the fixed income market. The market index, or the Nigerian Exchange All-Share index, plunged by 0.21% on Thursday, dragging the year-to-date return behind annual headline inflation. Stockbrokers said the NGX All-Share index was reduced by 208.21 basis points, representing a decrease of -0.21% to…

ITU Ranks Nigeria High in Digital Transformation Readiness A new report by the International Telecommunication Union (ITU), has ranked Nigeria very high at 71 percent in comparative legal, policy, and governance frameworks towards the G5—the advanced state of readiness for digital transformation known as the G5, with Germany, Finland, and Singapore leading the global chart. In the report conducted by the ITU, the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) and the Nigerian Communications Commission (NCC), and unveiled by Nigeria’s Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani in Abuja on Monday, Nigeria was ranked among Africa’s…

Naira Sinks after Reduced Arbitrage, Speculation in FX Markets Claim The Nigerian naira sank to the bottom of the forex market curve, depreciated by about 2.5% against the US dollar following intermittent FX market invention sales to boost liquidity. In the foreign exchange market, FX liquidity challenge persisted, causing the naira to losing weight against the US dollar across the informal, and official currency markets. The apex bank monetary policy committee has indicated that narrowing spread between the various foreign exchange segments of the market, is an indication of price discovery and improved market efficiency, thus reducing opportunities for arbitrage…