Author: Marketforces Africa

Vice-President Kashim Shettima says Nigeria is not just catching up with the rest of the world but also poised to overtake the

The Federal Government has released over N438 billion reimbursement to 34 States and the FCT, under the Nigeria Community

Yield Hits 25% as T-Bills Investors React to Rate Hike The average yield on Nigerian Treasury bills inched higher after the monetary policy committee of the Central Bank hiked the benchmark interest rate by 50 basis points on Tuesday. In reaction to the policy committee decision, investors in the secondary market trimmed their Treasury bills holdings ahead of primary market auction on Wednesday, July 24, 2024, The Debt Management Office (DMO) is expected to conduct primary market auction on behalf of the Central Bank of Nigeria (CBN) to refinance maturing bills. DMO would be offering ₦277.96 billion across standard maturities…

Interest Rate Tightening to Temper Growth – Analysts Growth expectations for 2024 could be dented by sustained benchmark interest rate hikes by the monetary authority, analysts told MarketForces Africa, saying the private sector will feel the negative impacts of a 50 basis points increase in the policy rate. A higher interest rate environment is negative for private sector growth; analysts emphasize that the mounting pressure on the productive economy could lead to job losses and constrained capacity. At the end of a two-day meeting of the monetary policy committee, the Central Bank of Nigeria (CBN) announced that the key lending…

Naira Plunges, Foreign Reserves Hit $36.24 Billion The naira exchange rate plunged despite FX market intervention sales at the informal and official currency trading markets on Tuesday. Ever rising demand for foreign currency put pressure on spot rate at the official window. This happened after the apex bank sold US dollars to authorised dealers on Monday, suggesting that the market’s FX scarcity challenge has deepen. According to information obtained from the FMDQ platform, the naira closed at ₦1,548.76 per US dollar, depreciating by 3.23% from the previous close. This reversed 6.05% exchange rate surge in the currency market at the…

Adesina Briefs African Leaders on AfDB’s Financial Resources Mobilisation to Drive Growth The president of the African Development Bank (AfDB) Group, Dr. Akinwumi Adesina, has outlined the Bank’s successes in mobilizing financial resources for the continent’s development needs at the African Union. Addressing heads of state and government at the 6th Mid-Year Coordination Meeting of the AU in Accra, Ghana, Adesina highlighted the Bank’s recent general capital increase from $201 billion to $318 billion, approved by the Board of Governors during its Annual Meetings in Nairobi last May. The approval will enable Africa’s only AAA-rated financial institution to preserve its…

Market Value of Tier-1 Banks Shrinks to N4.8 Trillion Nigerian big banks combined market valuation shrank to N4.8 trillion on the Nigerian Exchange (NGX) amidst an ongoing recapilisation programme. The Tier-1 banks saw mixed performance on the local bourse, with negative trading activities on three out of five big banks. Two of the Tier 1 banks recorded positive share price movement last week, three saw a valuation decline that plunged the banking index lower week on week. The ongoing public offer and rights issues have given investors opportunities to boost their stakes in banking stocks. The majority of the banks…

Investors See N488bn Gain in the Equities Market Investors saw about N488 billion gain in the equities market due to improved buying sentiments. Hence, year-to-date inched higher to 34.46%, racing ahead of the annual inflation rate of 34.19% as traders took large bets on stocks with good upside potential. Stockbrokers said buying sentiment was bolstered by the publication of half-year earnings reports and the declaration of juicy interim dividends by early filers. In its market update, Cowry Asset Limited told investors that trading activity presented a mixed bag, with the benchmark NGX All-Share Index rebounding by 0.87% week-on-week to 100,539.40…

CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume Reflecting positive investors’ sentiment, CUTIX, an electronic and electrical production company, saw its market value increase by about 30% in the equities market to close at N21.1 billion on Friday. The company shares have become investors toast in the recent times, pushing its market valuation uptrend more often than sell side. Inflation rate has pushed electrical products upward while companies face threat of high production costs. Trading volume on CUTIX shares were strong last week ahead of the company’s earnings release. A further check on its regulatory filing on the Nigerian…

Market Value: Linkage Assurance Lost 25% ahead of Bonus, Dividend Payment Linkage Assurance Plc lost a quarter of its market value on the Nigerian Exchange in the just concluded week as a result of a swarm of selloffs ahead of the dividend payment date. Investors exited positions in the assurance company stocks due to negative sentiment despite the market knowledge about its upcoming dividend in the month. Its market value declined by 24.5% to about N13.244 billion as trading activities on the assurance company captured investors’ intents, expectations. The price decline was a result of the large volume of Linkage…