Author: Marketforces Africa

Treasury Bills Yield Rises, Disinflation to Widen Real Return The average yield on Nigerian Treasury bills climbed slightly to 18.36% as the secondary market experienced mild selling pressure at the beginning of the week. Investors exited positions amidst successive squeezes in yields on the naira asset ahead of inflation data for June. The consumer price index has been projected to ease, reflecting the expectation that Nigeria’s reforms have started healing dislocated macro indicators. Inflation reduced to 22.97% in May, but the interest rate benchmark has remained unchanged at 27.75%, which makes the real return on investors hover at 4.53%. “If…

Oil Prices Fall Amidst Trump’s Plan to Sanction Russia Oil prices fell on Tuesday as geopolitical risks and market fundamentals continued to weigh on sentiment, with Brent crude trading at $68.71 per barrel. Brent had climbed to $70.53 on Monday before settling at $69.21 at the close. Brent crude was down 0.7% from the previous close, trading at $68.71 a barrel. At the same time, West Texas Intermediate (WTI) crude was priced at $66.39 per barrel. Market players focus on comments from US President Donald Trump, who recently warned that the US would impose 100% secondary tariffs on Russia if…

Benchmark Yield Crashes as Investors Hunt FGN Bonds The benchmark yield on Federal Government of Nigeria (FGN) bonds maintained downward movement in the secondary market as investors increased bets on the naira assets ahead of inflation with the expectation that supply for the third quarter will be tight and competitive. The bullish local bonds market has forced yield down below 17% due to tight supply expectations in the third quarter of the year. Investors are locking in elevated yields in anticipation that disinflation will force benchmark interest rates down—starting from the second half of the year. Inflation has reduced to…

Interbank Rates Rise, Liquidity Tightens as Banks Pay AMCON Levies Interbank rates edged higher with tightening liquidity levels in the financial system after deposit money banks settled their obligations to Asset Management Company (AMCON). Funding pressure heated up as the banking system deficit expanded to a N280.57 billion deficit, an increase of N118.11 billion on the day. Data from the FMDQ showed that money market rates remained at elevated levels following the monetary authority’s actions to keep liquidity at moderate levels. The effects of fast and sharp liquidity mopped up via huge open market operations forced banks to start pitching…

GCR Affirms Novare Fund Manager Nigeria Ratings with Stable Outlook GCR Ratings (GCR) has affirmed Novare Fund Manager Nigeria Limited’s national scale long-term and short-term issuer ratings of BBB+(NG) and A2(NG) respectively. The ratings agency also accorded the issuer rating outlook as stable. According to GCR, the ratings of Novare Fund Manager Nigeria Limited reflect the broad strengths and weaknesses of Novare Fund Manager Limited Mauritius. Ratings analysts explained that this is because Novare Nigeria is a core operating subsidiary of Novare Mauritius whose ultimate parent is South Africa-based Novare Holdings Proprietary Limited. The ratings balance the fund manager’s strong…

Bitcoin Tests $123,000 on Monster Rally Bitcoin (BTC-USD) surged above $123,000 for the first time ever, hitting a new all-time high of $123,091.61 earlier in the day before the world’s largest digital asset pull back. The momentum that lifted the market value of BTCUSD was sharp as investors ramped up position before some retail selloffs soften the hunting heat on Monday Major cryptocurrencies, Ethereum, Ripple, and Solana (SOL-USD) enjoyed the moment, but the top 10 failed to keep the momentum as bears stepped into the crypto exchange. The digital asset is trading at $119,614, having gained 10.77% in the last…

UBA Climbs to N1.89trn on Huge Trading Volume United Bank for Africa (UBA) Plc maintained uptrend which pushed its market value to about N1.89 trillion at the beginning of the week on huge volume transactions. Equities analysts are projecting significant upside potential for investors who staked bet on UBA shares ahead of earnings and interim dividends. With the shift market conditions and expectation of rates cut, UBA Plc has continued to keep its kite flying as the group continue to managing drags, gravity and capitalise on opportunities in the industry. The banking group has continued to attract investors; attentions in…

US Dollar Liquidity in Nigeria’s Currency Market Falls by 57.4% Volume of US dollar liquidity declined sharply at the Nigerian foreign exchange market (NFEM), with the naira retreating after previous gaining streaks. Last week, Naira depreciated by N1.70 against the US Dollar at the Nigerian foreign exchange market window, closing at N1,530.26 per dollar – reversing previous trend. The depreciation of the local currency was primarily driven by a moderation in FX liquidity and supported by outflows outpacing inflows, particularly from local sources including importers and non-bank corporates. The naira gained against the dollar by 0.97%, closing at N1,545 in…

Equities Investors Gain N341bn as Dangote, BUA Cement Rally Equities investors gained more than N341 billion as the Nigerian Exchange (NGX) opened strong after a positive close with about N3.5 trillion increase in portfolio value last week. The local bourse extends rally ahead of inflation data and rising year to date, which reflects positive sentiment on stock with sound fundamentals. This gain pushed the year-to-date (YTD) return to 23.09%, underscoring sustained investor confidence and an overall optimistic market sentiment. Market capitalization rose by ₦341 billion to ₦80.14 trillion, reflecting deeper market liquidity and heightened buying interest. Stockbrokers said today’s rally…

Oil Prices Up as Demand, Supply Imbalance Influence Energy Cost Oil prices rose in the global commodities market because of an imbalance in demand and supply, affected by geopolitical risks. Mixed messages regarding supply are still impacting energy markets. The international benchmark Brent crude was trading at $70.48 per barrel on Monday, marking a rise of around 0.17% compared to Friday’s closing price of $70.36. Similarly, the American benchmark West Texas Intermediate (WTI) traded at $68.59 per barrel, up approximately 0.2% from last Friday’s close of $68.45. Last week, markets closely monitored developments impacting the global supply-demand balance, including updates…