Author: Marketforces Africa

Equities Investors Lose N32bn as Zenith Bank, NB Plunge The equities market capitalisation of the Nigerian Exchange (NGX) spiraled downward by more than N32 billion on Wednesday over sell pressures on Zenith Bank, Nigeria Breweries, among others. Trading activities in the Lagos Exchange ended on negative note, stretching its losing streak to seven successive trading days. Key performance indicators dropped by -0.06% as investors exited their positions in banking and consumer good tickers amidst earnings festival in the market According to data from the NGX, the All-Share Index fell by 56.43 basis points today, representing a decrease of -0.06% to…

FBN Holdings Grows Profit by 95% to N365 Billion FBN Holdings Plc experienced strong earnings growth in the first half of the financial year 2024, according to the group financial scorecard submitted on the Nigerian Exchange. Its unaudited financials showed that profit after tax grew by more than 95% year on year to N365 billion at the end of first half of financial year 2024 from N187 billion 12 months earlier. According to the details from the unaudited financial statement, FBN Holding earnings per share printed at N10.11 in the period from N5.19 in the prior period in 2023. Further…

Zenith Bank Slumps as Investors Trade Huge Volume Following the announcement of the group rights issue and public offer, negative trading on the lender’s stock caused Zenith Bank Plc’s market value to drop by more than 2% on the Nigerian Exchange (NGX). Some value hunters in the local bourse trimmed their interest in the Tier-1 lender as the bank will begin capital raising from the market on August 1, 2024. As investors await the release of Zenith Bank’s second quarter 2024 earnings, the share price of the company fell to N33.85 on Tuesday, losing over 2% of its market capitalization.…

Huge Loss Damages Nestle Nigeria Earnings, Equity Capital Nestle Nigeria Plc’s earnings performance was damaged by a significant increase in foreign exchange losses in the first half of 2024; the company’s unaudited financial statement for the period showed. The consumer goods company recorded a net loss of N176.91 billion in the first half of the year, driven by foreign exchange losses emanated from its foreign currency liabilities totaling N263.71 billion. The consumer player is currently struggling to survive as zero capital would have given the management a better chance to source for additional capital. At the moment, Nestle Nigeria total…

Nigerian Eurobond Yield Climbs to 10.14% over Selloffs – Traders The average yield on Nigeria’s sovereign Eurobonds faced selling pressure in the international market on Tuesday ahead of the national protest starting in two days. Foreign investors trading Nigerian US dollar bonds in the market offloaded some papers amidst the worsening economic condition and sustained risk off sentiment in the debt securities. Traders at Cowry Asset Limited told investors in an emailed noted that the negative sentiment across various maturities led to a 4-basis point increase in the average yield, reaching 10.14%. Financial market data which mirror the nation’s economic…

International Breweries Net Loss Grows by 352% to N106.78bn A huge foreign exchange loss that emanated from International Breweries Plc’s foreign currency liabilities has damaged the company’s earnings, according to the company’s unaudited financial statement. The company’s net loss grew by more than 352% year on year to N106.78 billion at the end of the first half of 2024, up from N23.593 billion in the comparable period in 2023, details from its unaudited financial statement revealed. International Breweries grew revenue by 92.2% year on year to N223.2 billion from N116.13 billion in the comparable period in 2023. Analysts said the…

Benchmark Yield on Nigerian Bond Rises to 19.70% Trading activities on the Federal Government of Nigeria (FGN) bond ended on a bearish note in the secondary market, resulting in a 0.25% increase in the average yield. In their separate market updates, traders said the benchmark yield inched higher due to sell pressures or profit taking activities witnessed across tenor instruments in the secondary market. Yield hungry bond investors continue to reshuffle portfolios in a bid to optimsed return. Interest yield on Nigerian Government bond has been negative but strong enough to reduce banks appetite for creating credit. According to fixed…

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…