Author: Marketforces Africa

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…

Naira Rebounds as CBN Injects Dollar into FX Market The naira rebounded after two days of losses and closed the week at N1532 per US dollar in the Nigerian foreign exchange market (NFEM) on Friday as demand pressures eased following the Central Bank FX intervention. During the week, the official exchange rate worsened from N1518 to N1533 as daily logs showed demand for dollars outpaced forex market liquidity. To stem the tide, the Central Bank conducted FX intervention sales to authorised dealer banks to strengthen the supply side. The authority injected $80 million to suppress rising FX demand from eligible…

BUA, Dangote Drive Intraday Rally in Equities Market Top cement names BUA and Dangote Plc, including other early risers, are currently driving the Nigerian Exchange key performance indicators uptrend during the intraday trading session. Market capitalisation broke N82 trillion level on Thursday as equities investors ramped up companies shares with upside potential ahead of earnings releases. The sustained rally pushed the Nigerian Exchange (NGX) all-share index to new highs, and stockbrokers are anticipating a sharp growth for the last trading session of the week. At midday, the NGX All-Share Index advanced by 0.36%, Alpha Morgan Limited said in an emailed…

Nigerian Bonds Yield Falls on Post-Disinflation Reactions The benchmark yield on Federal Government of Nigeria (FGN) bonds eased to 16.6% in the secondary market as a result of fixed interest income investors sustained buying appetite. Local bond yields have been in decline as markets experience tight supply and disinflation ahead of policy rate cut expectations. Inflation fell to 22.22%, tracking benchmark interest rate of 27.5% Investors are buying Nigerian bonds to lock in yield before the Central Bank cuts the benchmark interest rate, which is expected to affect the spot rate at the primary market auction across the debt market.…

NICA Advocates Clear Path, Innovation for MSME Credit Access The National Institute of Credit Administration (NICA) chartered, has called for transparency, collaboration, innovations, and strict adherence to its mandate for success of the National Credit Guarantee Company (NCGC). Prof. Chris Onalo, Registrar/Chief Executive Officer, NICA, gave the advice in a statement on Thursday in Lagos. Onalo said NICA recognised the benefits of the NCGC initiative toward revolutionising access to credit for Micro, Small, and Medium Enterprises (MSMEs) and other key sectors of the economy. He urged NCGC to maintain transparency in its operations, ensuring that all stakeholders have access to…

UBA to Raise N157bn via Rights Issue to Boost Capital Pan-African lender United Bank for Africa Plc (UBA) has announced plans to raise N157 billion through a rights issue. The disclosure was made via a notice to the Nigerian Exchange Ltd. (NGX). It said in a statement on Thursday that its stockbrokers, United Capital Securities Ltd., had submitted an application to the Nigerian Exchange Ltd. to that effect. It added its stockbrokers had requested for approval and listing of a Rights Issue of 3,156,869,665 ordinary shares of 50 Kobo each at N50.00 per share. “Trading License Holders are hereby notified…

Treasury Bill Yield Falls as Investors React to Disinflation The average yield on Nigerian Treasury Bill continues to decline as investors lock in positions amidst rate cut expectations and disinflation. With the third disinflationary trend in the Nigerian economy, some analysts are now anticipating that the Central Bank will cut rates at the monetary policy committee meeting next week. Nigeria’s headline inflation fell to 22.22% for the month of June, while the policy rate has been kept at 27.50%, widening the real return on investors above 5%. Inflation is projected to maintain a downtrend for the second half of the…

Nigerian Exchange Crosses N82trn as BUA, Dangote Cement Rally The Nigerian Exchange (NGX) crossed N82 trillion as heavyweights like Dangote, BUA Cement, and others rallied; investors reacted positively to disinflation. The Nigerian domestic market closed the trading session in the green, as key market performance indicators gained 0.92%. Despite a negative market breadth driven by profit-taking in some recently appreciated stocks, strong buying interest in blue-chip stocks such as BUACEMENT, DANGCEM, FIRSTHOLDCO, and others helped sustain the market’s bullish momentum. Stockbrokers said the renewed demand wiped off the bearish touch seen during trading activities and extended the market’s winning streak…