Author: Marketforces Africa

Money Market Rates Rise as Banks Compete for Limited Funds Money market rates rose as forex interventions, settlement, and Asset Management Corporation (AMCON) levy settlement widened the liquidity deficit in the financial system. As a result of a tight funding profile in the money market, local deposit money banks competed for limited funds in the absence of additional inflows.  The short-term benchmark interest rates surged to 32% mark, while the banking system deficit surged to N659.92 billion last week. Banks’ borrowing activities increased as operators sought funding with the tight liquidity, which was primarily due to the absence of OMO…

SIFAX Shipping Launches Direct LCL Export to UK In a groundbreaking move set to redefine outbound shipping from Nigeria, SIFAX Shipping Company Ltd. has launched direct Less-than-Container Load (LCL) export services to the United Kingdom through a strategic partnership with Netcargo UK Limited, a subsidiary of Net Cargo Group. In a statement, the company said this development offers a major breakthrough for businesses that have long grappled with the complexities of cross-border logistics, delays, and costly transshipment processes in their bid to export goods to the United Kingdom. According to Mr. Adekunle Owobamirin, General Manager, Groupage and Export Services, SIFAX…

Equity Investors Gain N3.44T, Cement Names Drive Industrial Index Equity investors gained N3.44 trillion on the Nigerian Exchange (NGX) in an all-week rally that pushed key performance indicators to fresh highs. The industrial index surged by 19.17% as cement names Dangote, BUA, and Lafarge Africa gained momentum in the local bourse. The bargain hunting that lifted market capitalisation and all share indexes to new highs was buoyed by improved investor sentiment and enhanced funds inflow. The Nigerian Exchange All-Share Index (ASI) surged past the 131,000 psychological barrier to close at 131,585.66 points, representing a 4.31% week-on-week upswing. Several stockbrokers reported…

AGF Denies FG’s Involvement in FirstHoldco Block Shares Deal The Attorney General of the Federation (AGF), Lateef Fagbemi, has denied the Federal Government’s involvement in the recent acquisition of approximately 25 percent of FirstHoldCo’s shares, valued at over ₦323 billion. The statement followed media reports alleging that the transaction was facilitated through a federal government-backed special purpose vehicle (SPV). Several social media and online platforms had reported that a trustee acting on behalf of the Federal Government under the supervision of the Attorney General’s office and the Central Bank of Nigeria (CBN) had facilitated the share acquisition. However, a rebuttal…

Stanbic IBTC Hits 52-Week High Ahead of August Earnings Stanbic IBTC Holdings Plc surged to a new all-time high of N99.50 per share in the equity market, buoyed by investor optimism ahead of its anticipated earnings release. According to trading details obtained from the Nigerian bourse, Stanbic IBTC was the top performer among banking stocks, in relative and absolute terms. It also raced ahead of some Tier-1 banks in terms of market valuation, reflecting solid earnings growth expectations, and some stockbrokers hinted about interim dividends. Last week, the financial services company’s share price increased by 18.40% week on week on…

Access Holdings Rises on High Trading Volume amidst Growth Forecast Access Holdings Plc’s market value climbed by 8.3%, or N109.301 billion, as investors’ positive sentiment triggered bargain hunting that lasted for three out of four days on the Nigerian Exchange. Analysts attribute the strong earnings growth target and interim dividends as key drivers for increased share purchases in Nigeria’s largest banking group in an open market. Based on data from the Nigerian Exchange, Access Holdings share price settled at N26.85 on Friday when 113.8 million units valued at N3.069 billion were traded by investors. The transaction toned down the three-day…

Market Value of All Nigerian Listed Banks Rises to N15.65trn Driven by market-wide positive sentiment, the banking index climbed by 5.36% as the market value of Nigerian-listed deposit money banks surged by about N700 billion in four days in the equities market. MarketForces Africa’s research note showed that the stock market valuation of all listed banks increased by N699.840 billion to close at N15.646 trillion on Friday. With a 27.84% year-to-date return, the local bourse has seen sharp growth that has eclipsed the inflation rate, as growth has been fueled by fear of missing out (FOMO) ahead of earnings releases.…

Nigeria’s Foreign Reserves Grow by $420m, Bonny Light Climbs Nigeria’s foreign reserves climbed by $420 million this week amidst a positive oil earnings outlook for the second half of the year, according to the latest update from the Central Bank (CBN). The Apex Bank data on external reserves showed that the gross balance surged to $37.854 billion towards the end of the week, from $37.432 billion at the beginning of the week. The nation’s external reserves expanded as Nigeria’s oil grade Bonny Light price surged in the commodity market, while reports showed increased oil output. Crude prices declined for the…

CBN Intervenes in Currency Market to Redirects NFEM Rate The foreign exchange market faced pressure due to increased demand for US dollars this week, leading to the Central Bank of Nigeria (CBN) injecting $80 million at the beginning of the week with additional FX sales on Friday. The Apex Bank’s interventions have been crucial in stabilizing the naira exchange rate, preventing further depreciation in the absence of US dollar injections. The FX market experienced a mixed but relatively stable week, shaped by intermittent CBN interventions and shifts in dollar liquidity, analysts at AIICO Capital Limited said. At the beginning of…

Equity Investors Gain N823bn, NGX Market Cap Surpasses N83Tn The equity segment of the Nigerian Exchange (NGX) hits fresh highs over an untamed rally that pushed the local bourse market capitalisation above N83 trillion. The Lagos bourse sustained its bullish momentum this week, as the NGX All-Share Index (ASI) advanced by 1.00% to close at 131,585.66 points. This robust performance lifted the year-to-date (YTD) return to 27.84%, underpinned by persistent investor optimism and growing confidence in the resilience of the domestic bourse. The market capitalization also recorded a substantial increase of N823 billion, settling at N83.24 trillion—signaling improved market liquidity…