Author: Marketforces Africa

UK Mortgage Reforms to Support Home Ownership, Limited Risk for Lenders UK mortgage reforms will support homeownership with limited risk for lenders, as the Financial Conduct Authority (FCA) implemented measures to simplify affordability assessments for borrowers seeking to shorten their mortgage term or refinance with a new lender, Moody’s said. In a commentary note, the global ratings agency explained that the new rules give lenders more underwriting discretion and increase flexibility for borrowers, while potentially reducing their borrowing costs. It said the revisions remove the outdated regulatory guidance and align with the principles of Consumer Duty, making it easier for…

United Capital Declares N5.4bn Interim Dividend as Profit Rises by 54% United Capital Plc has reported a profit after tax of N11.9 billion for the first half of 2025. This represents a 54 percent increase from N7.74 billion profit recorded for the first half of 2024. The company announced this in a corporate disclosure on Monday through the Nigerian Exchange Ltd. The profit before tax also grew by 52 per cent, from N9.06 billion in 2024 to N13.79 billion while the gross earnings rose by 57 per cent, from N15.15 billion to N23.76 billion. The net operating income climbed to…

DMO Crashes Rates on Nigerian Government Bonds The Debt Management Office (DMO) crashed spot rates on Nigerian government bonds at the main auction for the month of July amidst tight supply and surging demand. MarketForces Africa reported that the office opened its monthly bonds auction for subscription, where it sought to raise N80 billion across 5- and 7 years reopenings. As planned, the authority offer size the bonds across two tenors, and yield-hunting investors doubled down on their bets on the naira assets at the auction. Auction results obtained by MarketForces Africa showed that aggregate subscription from the competitive bids…

Transcorp Power Grows Profit by 19.8%, Declares Interim Dividend Transcorp Power Plc grew profit after tax by 19.8% year on year to N44.05 billion, its financial statement filed with the regulator has revealed. The company earnings surged amidst uncertainties in the economy, reflecting its escalated cost pressure.  Details revealed that the company’s revenue jumped by 52.0% year on year to N205.8 billion, buoyed by strong growth across key revenue stream. Breakdown revealed that income from its capacity charge surged by 30.8% and energy delivered an uptick of 61.5% year on year.  International sales contributed 28.7% to revenue, up from 22.0%…

Oil Prices Increase as Trade Deals Fuel Demand Optimism Oil prices increased in the global commodity market on Monday as a new trade agreement between the US and the EU eased supply concerns, and fuelled optimism. The markes appear to have price in uncertainty over the Federal Reserve’s interest rate outlook in addition to weak imports in China and OPEC+ supply boost. The international benchmark Brent crude rose around 0.85% to $68.17 per barrel, up from $67.59 at the previous session’s close. The US benchmark West Texas Intermediate (WTI) crude increased by 0.91% to $65.41 per barrel, compared to $64.82…

Foreign Investors Bet on Nigeria Eurobond with Nov Maturity Nigeria’s sovereign Eurobonds rallied on foreign portfolio investors’ positive sentiment, supported by improved local macroeconomic indicators. The yield on the US dollar-denominated borrowing notes fell as its price climbed over increased demand seen across the short and belly of the curve. Lower yields suggest Eurobond costs for the Nigerian government and other African issuers have eased due to improved macros. At the close of the trading session, the average on Nigerian Eurobonds went down, falling by 6 basis points to settle at 8.39%, according to Cowry Asset Limited. Market analysts said…

Debt Office to Open N80bn Bonds for Subscription Nigeria’s Debt Management Office (DMO) is scheduled to open N80 billion worth of local bonds for investors subscriptions at the primary market auction on Monday, according to details from its offer circular. The auction is expected to be oversubscribed, reflecting sustained demand for government borrowing instruments. Analysts said strong appetite for naira assets will afford another spot rate reduction on FGN bonds at the auction, supported by disinflation. The authority has continued to reduce the amount raised from the local debt capital market since the beginning of the year. The shift reflects…

Oil Prices Close Bearish over Global Trade Uncertainties Oil prices fell slightly this week, weighed down by renewed trade tensions, fresh sanctions on Russian energy exports, and volatile signals from US economic policy, despite uncertainties over US and other countries trade agreements. The international benchmark Brent crude was trading at $68.53 per barrel, marking a fall of around 0.9% from last week’s closing price of $68.60 on Friday. Similarly, the American benchmark West Texas Intermediate (WTI) traded at $65.92 per barrel, a decrease of approximately 1.1% from last Friday’s close of $66. Brent crude began the week under pressure, as…

Nigerian Bond Yield Falls to 16.28% after Coupon Payment The average yield on Nigerian government bonds dropped to 16.28% in the secondary market as asset managers and other risk-averse investor groups continue to increase bets on the fixed interest securities. Disinflation and lower supply have tightened yields on the Federal Government of Nigeria (FGN) in the secondary market. Real return remains hefty at 5.28% as Nigeria’s inflation rate dropped to 22.22% while the interest rate benchmark stayed elevated at 27.50%. Inflation is projected to decline throughout the second half, supported by the consumer price index rebased figure. Meanwhile, there is…

Short-Term Rates Ease as Banks Deposit Excess Fund with CBN The short-term benchmark interest rates in the absence of funding pressures in the financial system following an influx of inflows across sources. The local banks switched gear from active borrowing to deposit their excess funds with the Central Bank of Nigeria (CBN) after federal account allocation committee inflow, net inflows from Nigerian Treasury Bills and FGN coupon payment boost system liquidity. The latest inflows ended the deficit liquidity conditions that pushed money market rates above 32%. In the week, rates declined sharply as local banks with surplus fund re-priced funds.…