Author: Marketforces Africa

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…

Oil Prices Decline over China’s Demand Concerns In the global commodity market, crude oil prices decline over concerns that China’s demand outlook is weakening and a stronger dollar despite a tightening supply picture. Brent dipped by 0.7% to $84.57 a barrel, while WTI fell 0.8% to $82.16 a barrel.  Oil supply is expected to tighten in the near future. Improving compliance from OPEC members should keep the market undersupplied by more than 1 million barrels a day in the third quarter, pushing prices toward $90 a barrel, analysts from ANZ Bank say in a research note Chinese demand concerns continue…

Nigeria Fines WhatsApp, Facebook $220m over Data Abuse Nigeria’s antitrust agency, Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on Meta, formerly known as Facebook and WhatsApp over alleged consumer rights’ infringements. In a statement, acting Executive Vice Chairman/Chief Executive, FCCPC, Dr. Adamu Abdullahi, accused the social media platforms of denying Nigerian data subjects the right to self-determine; unauthorised transfer and sharing of Nigerian data-subjects personal data, including cross- border storage in “violation of then, and now prevailing law”. The commission further indicted the platforms over discrimination and disparate treatment; abuse of dominance; and tying and…

How to Buy Banks New Shares, Pay for Rights Issue A few years ago, paper work and long processes might have discouraged you from investing in the stock market. Now, things have changed drastically. You can buy and trade with a click on your mobile device, seamlessly. Buying shares offered by Nigerian banks from your device has been made very easy. There is no demand to fill out any paper forms. Whether you are an existing shareholder in one of the listed companies on the Nigerian exchange or you are planning to buy public offers from banks, the process has…