Author: Marketforces Africa

Gold Hits Record High as Investors pile into Safe Haven Gold has stormed to fresh record highs, breaking through $3,575 an ounce, as global investors accelerate their flight to safety amid mounting geopolitical and economic turmoil. The precious metal is trading at its strongest levels in history, lifted by expectations of imminent US interest rate cuts, a weakening dollar, and unprecedented central bank demand. In a commentary note made available to MarketForces Africa, Nigel Green, CEO of global financial advisory giant deVere Group, says: “Gold’s surge into record territory underscores the scale of unease among investors. “Currently, we predict the…

Transcorp Climbs as Investors Re-Enter Positions Transnational Corporation Plc surged as investors started making fresh entries into the conglomerate stocks on the Nigerian Exchange trading platform on Thursday. With focus on portfolio that spans power, resources and hospitality, Transcorp has been less volatile in the local bourse after interim dividend announcement. But then, the upside was constraint when compared with monster rally experienced in the Nigerian stock market. Huge trading volume of more than 1.263 million units valued at N59.594 million lifted the company’s share price upward by 8.04% on Thursday. With additional information that reflect changes in its…

Intraday Rally: Buying Interest in Big Banks Boosts NGX Index Buying interest in big banks and other lightweight listed companies stock boosted Nigerian Exchange (NGX) All-share index during intraday trading session in the local bourse. The market begins to gaining momentum on Thursday after three days losing streak, and stockbrokers think key performance indicators would probably be closed in green. Investors are making fresh entries into banking amidst expectation that earnings results will be released in Sept, reflecting positive sentiment seen in Access Holdings, Zenith Bank and UBA during early trading hours. At midday, the NGX All Share Index witnessed…

Oil Prices Edge Lower over Demand, Supply Imbalance Oil prices fell Thursday as expectations grew that the Organization of the Petroleum Exporting Countries (OPEC) and its allies could agree to raise output at their meeting this weekend, while a surprise build in US crude inventories added to concerns about oversupply. Brent crude was trading at $66.75 per barrel, 0.8% lower from the previous close of $67.27. US benchmark West Texas Intermediate (WTI) fell 0.8% to $63.02 from $63.54 in the prior session. Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman will meet Sunday to review October production…

Interbank Market Liquidity Keeps Short-Term Rates Steady The robust liquidity balance in the financial system kept the short-term benchmark interest rates steady despite outflow for net OMO bills settlement. The financial system closed with N1.373 trillion, a decline of N94.10 billion on the day from an opening balance of N1.467 trillion, according to data released by AIICO Capital Limited. Banks borrowing activity at the Central Bank of Nigeria (CBN) standing lending facility (SLF) window has reduced significant with local lenders taking excess funds to deposit facility instead. The sufficient liquidity conditions reversed previous trend, staying positive despite CBN efforts in…

Naira Strengthens to N1521/$ on Robust U.S. Dollar Supply The naira strengthened at the Nigerian foreign exchange market (NFEM) amidst rising external reserves, growing confidence in the currency market and the Central Bank of Nigeria (CBN) unending intervention. The multivariate supporting conditions have helped the local currency trading within the target range, and a slide US dollar pressure often trigger immediate FX intervention from the authority. FX update from the CBN showed that the naira appreciated 0.30% due to stronger dollar supply at the official window. The local currency traded between ₦1,518.00 and ₦1,525.00 before settling at ₦1,521.46. The CBN’s…

How Major Currencies Trade in Forex Markets Euro Trades at 1.16 in FX Markets, as US Dollar Softens, The euro consolidated gains above $1.16, hovering near its strongest level in over a month, as the US dollar weakened on softer jobs data. The JOLTS report showed US job openings fell by 176,000 to 7.18 million in July, the lowest since September 2024 and below expectations of 7.4 million, reinforcing bets on Federal Reserve rate cuts in September. In Europe, fiscal concerns are rising amid expectations of higher defense spending and increased German infrastructure investment, while attention also turns to French…

Insurance Index Dips as Investors Sell AXA Mansard, AIICO Insurance index was down significantly as investors continue to take profit on operators stocks over sustained negative sentiment. Key drivers of sell pressure were AXA Mansard and AIICO Insurance, the top names among listed insurers companies in the local bourse. The sell pressure plunged market value of the operators lower, and the market anticipates the trend would likely persist in the absence of fresh catalysts to fuel a new rally. Stockbrokers said the local bourse has reached an overbought level, and the retracement or what some call market correction has been…

Nigerian Exchange Extends Losses as Investors Exit Positions The Nigerian Exchange (NGX) sustained its bearish trajectory, with the All-Share Index (ASI) falling by 0.45% to close at 138,780.55 points, reducing the year-to-date return to 34.23%. Total market capitalization contracted by ₦394.45 billion to ₦87.42 trillion on the back of subdued investors’ sentiment – 14 stocks advanced compared to 43 decliners. The market negative close was driven by persistent sell-offs in medium and high-cap stocks such as LEGENDINT, PZ, UBA, and others across key sectors. The decline was further fuelled by investors’ safe-haven repositioning into alternative asset classes, particularly commercial papers…

Oando Slides, Energy Stock Trades at Significant Discount Dual listed energy company, Oando Plc saw a decrease in its market value on Monday with investors expressing pessimism towards the energy stock, which is currently trading at a considerable markdown compared to its highest value in the last 52 weeks. The stock continues to face challenges amid market uncertainties. Analysts think the selloffs will persist unless Oando regains market trust and stabilise its stock performance. According to data obtained from the Nigerian Exchange, its share price declined to N48 as 3.197 million units valued at N159.224 million were traded on Monday.…