Author: Marketforces Africa

Private Sector Gains Momentum, Prices Surge Softens – PMI Growth in the Nigerian private sector continued to gain momentum during August as customer demand improved and inflationary pressures softened, according to Stanbic IBTC Purchasing Manager Index (PMI) released by S&P Global. Sharper increases in output and new orders were recorded, although rates of expansion in purchasing activity and employment eased. Meanwhile, business confidence softened, but firms remained optimistic that output will increase over the coming year. At 54.2 in August, the headline PMI was above the 50.0 no-change mark for the ninth month running, signalling a sustained improvement in the…

Nigeria’s External Reserves Rise by $1.91bn in August Nigeria’s gross external reserves increased by $1.91 billion in August, closing the month at $41.267 billion as of August 29, based on data obtained from the Central Bank. The nation’s foreign reserves opened the month with the total sum of $39.359 billion on the back of successive inflows. The country’s gross external reserves is at its highest since 2021 amidst uncertainties in the global commodities market. Oil prices fell on Friday as traders looked toward weaker demand in the U.S., the world’s largest oil market, and a boost in supply this autumn…

CBN Defends Naira With $586 Million in August The Central Bank of Nigeria (CBN) conducted foreign exchange interventions twice last week, selling $170 million to authorised dealer banks to strengthen dollar supply. The latest round of FX intervention boosted total US dollar sold to banks to $586 milllion, a stance the authority has maintained since the begining of the year. Last week, the monetary authority came to the rescue following a signal that the official exchange rate could fall due to surging demand by companies seeking foreign currency payments. The Nigerian Foreign Exchange Market (NFEM) saw increased demand for dollars,…

Oil Prices Rise Amidst Fresh Attack on Vessel at Red Sea Crude oil prices increased in the global market on Monday as escalating clashes between Russia and Ukraine fuelled supply concerns. Also fuelling the rally is heightened tensions with the Yemeni Houthi group ballistic missile attack on an Israeli vessel off the Red Sea coast. Brent crude was trading at $67.66 per barrel, up 0.4% from the previous close of $67.37. US benchmark West Texas Intermediate (WTI) rose 0.6% to $64.11 from $63.73 in the prior session. German Chancellor Friedrich Merz said he sees little chance of a diplomatic breakthrough…

CBN Raises N1.19trn from OMO Bills Investors, Rejects Bids The Central Bank of Nigeria (CBN) raised N1.19 trillion across two open market operation (OMO) auctions the authority conducted last week to replace expired instruments and put a tab on excess liquidity in the financial system. Foreign portfolio investors were active at the auction, as juicy rates on the short-term instruments attracted attention, drawing hot money into the economy. OMO auctions have been rapid as the CBN hunts for FX inflows to ensure long-term stability of the local currency, the naira. MarketForces Africa reported that the two auctions were well received…

NGX Seeks Global Partnerships to Boost Market Growth The Nigerian Exchange Group (NGX) has reaffirmed its determination to grow its market through product expansion, increased listings, and strategic global partnerships. Chairman of the NGX, Dr Umaru Kwairanga, disclosed this during an engagement with the Brazil Stock Exchange and Over-the-Counter Market (B3) in São Paulo on Sunday. Kwairanga, in a statement, noted that the NGX, established over 60 years ago, currently has more than 400 listed securities with capitalisation nearing N100 trillion. He admitted the figure remained modest compared with B3’s capitalisation, stressing that NGX would increase its numbers through collaborations…

Funding Rates Ease over Robust Liquidity in Banking System Funding rates eased below 27% as a result of excess liquidity in the financial system, reversing deposit money banks’ (DMBs’) persistent borrowing from the Standing Lending Facility of the Central Bank. Open repo and overnight lending rates dropped significantly week on week in the absence of funding pressures despite aggressive liquidity mop-up activities by the Central Bank. The financial system was bolstered by huge inflows from expired OMO bills, as well as significant inflows from FAAC to states, in addition to other statutory revenue allocations. However, the Central Bank of Nigeria…

UBA Investors Get 41% on Money Invested Since January United Bank for Africa, UBA Plc, was the only Tier-1 lender that posted gains in the equity market last week, bucking the negative trend on the Nigerian Exchange (NGX) trading platform with positive price appreciation that lifted its market value to N2 trillion. MarketForces Africa Research highlighted that UBA shareholders’ portfolio value increased by about N33 billion in the local bourse, making it a lone gainer among Tier-1 names. With a 41% year-to-date return, the Pan African lender courted investors’ attentions amidst fading bargain hunting in the local bourse in the…

Zenith Bank Gives Investors 53% Return in 8 Months Zenith Bank Plc upside potential has widened as the financial services company’s share price becomes cheaper for investors seeking value ahead of earnings release. At the reference price of N70 last week, Ajose Adeogun headquartered financial service company with 35 years in operation, has delivered some 53% return in investors to shareholders in eight months. Data from the Nigerian Exchange (NGX) showed the bank’s share price closed at N66, which is approximately a 16% discount below its 52-week high of N78.50. In the stock market, bargain hunting faded sharply last week…

Access Holdings Investors See 13% Price Appreciation in 8-Month Access Holdings Plc dipped slightly in the equity market amidst fading bargain hunting while investors priced in the first half of 2025 earnings delay. The financial services company extended its earnings release date on the Nigerian Exchange after the board announced the result has been transmitted to the Central Bank for final approval. At the close of the trading session last week, Access Holdings Plc’s 53.317 billion shares outstanding in the local bourse valued at N1.412 trillion, N26.658 billion below its previous position. A slew of equity analysts’ target prices for…