Author: Marketforces Africa

Nigerian Bonds Yield Falls to 18.6% Before Thin Auction Supply The average yield on Federal Government of Nigeria (FGN) bonds fell to 18.64% in the secondary market ahead of thin supply by the Debt Management Office (DMO) on Monday. The DMO is expected to offer N100 billion worth of local bonds across re-opening and fresh issues to investors at the primary market auction (PMA) scheduled for today. In the secondary market, trading activities ended on a positive note last week, buoyed by improved investor sentiment, a stronger sovereign ratings outlook, and resilient demand across maturities, said Cowry Asset Limited in…

Treasury bills Yield Drops as CBN Rejects N1.07trn Subscription The average yield on Nigerian Treasury bills eased in the secondary market after the Central Bank (CBN) rejected excess subscriptions totaling N1.071 trillion at the main auction last week. Investors with lost bids at the primary market auction heated up trading activities in the secondary market. The increased hunting for Treasury paper dragged yield backward. The average yield declined by 13 basis points (bps) to 20.5% in the Nigerian Treasury bills segment as market participants filled unmet bids, Cordros Capital Limited said in a note. At the auction, the CBN offered…

Liquidity: CBN FX Swap, OMO Debit Heighten Market Rates Money market rates climbed on aggressive liquidity management operations of the Central Bank of Nigeria (CBN) ahead of FAAC inflows in the new week. Hence, the open repo and overnight lending rates increased sharply as open market operations and CBN forex swaps reduced the liquidity level in the financial system. Data from the FMDQ platform showed that funding rates surged as average liquidity declined from N986.49 billion to N180.96 billion. The open repo rate increased by 167 basis points week on week to 28.17%, while overnight lending climbed by 193 basis…

Ellah Lakes Soars by 57% on Higher Trading Volume Ellah Lakes soared by about 57% as investors attention shifted toward agribusiness, which significantly boosted the Nigerian Exchange (NGX) commodity index. The agriculture-linked stock became the top performer in the equities market due to an all-week rally that pushed its market value to N20.564 billion at the close of the trading session on Friday. NGX trading data showed the share price rose to N5.33 on Friday as 15.549 million valued at N82.083 million exchanged hands. More than 31 million shares were traded on Thursday—the highest trading volume happened on Tuesday when…

Legend Internet Investors Pocket 48% Gain in 1-Week Indigenous broadband company Legend Internet Plc joined heavy risers in the equities market. Investors made 48% on the tech company as its share price increased sharply following heavy bargain hunting. The increased demand for Legend Internet Plc shares pushed its market value to N15.80 billion, spread over its 20 billion shares outstanding on the Nigerian Exchange. Thus, an investment worth N1 million in Nigeria’s last-mile fiber-to-the-home broadband provider could have surged to N1.480 million due to monster rallies that nudged its share price higher by 48.3% in the stock market. Trading data…

Nigerian Exchange Expands as Equities Investors Gain N1.75trn The Nigerian Exchange (NGX) market capitalisation expanded as equities investors gained N1.75 trillion in the just concluded week, pushing key performance indicators to record highs. The local bourse extended its bullish streak as the benchmark All-Share Index (ASI) surged by 2.35% week-on-week to close at 118,138.22 points, marking another all-time high. The powerful market performance was driven by renewed investor interest, particularly in the banking, oil & gas, and consumer goods sectors, according to stockbrokers’ reports. At the start of the week, sentiment on the bourse turned sour after the Central Bank…

The Nigerian US dollar-denominated bonds borrowing costs declined in the international market as foreign investors opened and closed positions across African issuers and rated sovereign assets. 

CBN Defends Naira with $61 Million FX Sales to Banks The Nigerian foreign exchange market experienced a liquidity boost from the Central Bank (CBN) following a surge in US dollar demand logged by eligible market participants during the just concluded week. The fx injection has reduced sharply in the current month as against the experience witnessed in the forex market in May. The naira has enjoyed relative stability even with low US dollar volume from the CBN. The market experienced a mild shock as US dollar volume demanded increased, but the CBN came forth quickly. Hence, the naira appreciated by…

Oil Prices High on Third Week Rally, Brent Nears $76 High on geopolitical tensions, oil prices tracked higher for a third straight week as escalating Israel-Iran conflict raises concerns over supply security in the Middle East. The international benchmark Brent crude was trading at $75.59 per barrel on Friday, marking a rise of around 2.6% from last week’s closing price of $73.67. Similarly, the American benchmark West Texas Intermediate (WTI) traded at $73.49 per barrel, up approximately 2.6% from last Friday’s close of $71.60. Brent crude is on track for a 2.6% weekly increase due to escalating geopolitical tensions and…

Fitch Upgrades UBA Ghana’s Viability Rating Fitch Ratings has upgraded United Bank for Africa (Ghana) Limited’s (UBA Ghana) Viability Rating (VR) to ‘b-‘ from ‘ccc+’, it said in a new rating note. UBA Ghana’s Long-Term Issuer Default Rating (IDR) has been affirmed at ‘B-‘ with a stable outlook. The rating action follows the upgrade of Ghana’s Long-Term Foreign-Currency IDR to ‘B-‘, from ‘RD’ (Restricted Default), and Long-Term Local-Currency IDR to ‘B-‘, from ‘CCC+’, on 16 June 2025. According to Fitch, the upgrade of the VR primarily reflects reduced solvency risks due to a lower likelihood of another default on the…