Author: Marketforces Africa

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…

GCR Upgrades Globus Bank Ratings with Stable Outlook GCR Ratings has upgraded Globus Bank Limited’s national scale long term rating to BBB(NG) from BBB-(NG) and affirmed the short-term rating at A3(NG). Concurrently, the outlook on the rating was affirmed at stable, the African markets-focused ratings agency said in its latest update on the bank. The rating upgrade reflects Globus Bank Limited’s improved competitive position and capitalisation assessment, underpinned by additional capital injection and stronger earnings capacity, GCR said. It stressed that the ratings also balance Globus Bank’s stable funding structure, adequate liquidity and sound asset quality metrics. In the financial…

London to Bridge Cross-border Transaction Gaps for Nigerian Tech Startups The Deputy Mayor of London, Howard Dawber, has identified the ease of opening accounts in London banks as a major hurdle for Nigerian businesses in facilitating seamless cross-border financial transactions. Dawber, who was part of the London trade mission delegation to Nigeria, disclosed this to newsmen during the delegation’s visit to Lagos. The deputy mayor acknowledged that while Nigerian tech startups were innovating and creating valuable solutions, this significant hurdle remained a challenge in facilitating seamless cross-border financial transactions. He underscored London’s commitment to fostering stronger economic partnership with Nigeria…

Investors Take Positions in FirstHoldco, Access, BUA Cement FirstHoldco, Access Holdings, BUA Cement, and other major market movers drove the Nigerian Exchange to a high pitch during the intraday trading session on Thursday. The stock market has continued to attract investors’ attention ahead of the second quarter earnings release, while investors are anticipating interim dividends from dividend aristocrats. Some stocks have witnessed sharp volume transactions. There were block trades in First Holdco amidst the decision of its previous board leaders selling down their interest to pave the way for peace. Other banking stocks have also seen increased rerating ahead of…