3rd August 2023 Africa Markets Roundup


  % ChangeYTD (%)  
NGX ASI64,267.360.12%25.40%
Brent Crude Oil   83.33-1.86%-3.00%  
Natural Gas2.47-3.36%-39.76%
I&E FX Window 741.646.01%-65.53%
Parallel Market  867.50-0.46%-16.25%
Nigerian Treasury Bill (Average Yield %)6.69%0.00%9.14%
FGN Bonds (Average Yield %)13.26%0.00%12.18%
Gold  1,934.81-0.47%6.65%
Cocoa 3,568.000.23%36.93%
  • The market rebounded on Wednesday as the benchmark NGX All-Share Index (ASI) inched up 75.16 (0.12%) points to close at 64,267.36, representing a week loss of 2.16%, a 4-week gain of 4.46%, and an overall year-to-date gain of 25.4%.  Key share price movement include National Salt Company (10%), Abbey Mortgage Bank (10%), Chams (10%) and Skyway Aviation Handling Co. (9.96%).

Corporate Results – FCMB Group has recorded a 148% growth in PBT of N38.2 billion for H1 2023 compared to N15.4 billion in the corresponding period of 2022. Lafarge Africa reported its Q2 2023 showing PBT grew by 29.02% y/y, reaching N32.787 billion.   This took the H1 2023 PBT to N55.315 billion versus N46.879 billion in the same period last year. Dangote Sugar in its H1 2023 results reported a 9.3% y/y growth in revenue to N202.78bn from N185.46bn in H1 2022. Its topline performance was driven by growth in sales of sugar (50kg), sugar (retails) and molasses to N194.19bn (+8.3% y/y), N5.86bn (+70.8% y/y) and N1.54bn (+7.9%) respectively in H1 2023 while Freight Income declined by 13.2 y/y to N1.19bn in the period. Fidelity Bank reported its 2023 Q2 2023 showing PBT by 184.08% y/y, reaching N43.58 billion.  This took H1 2023 half-year PBT to N61.19 billion versus N25.67 billion in the same period last year.

  • Brent crude oil futures erased earlier gains and fell toward US $83 per barrel on Wednesday. Crude oil futures fell under pressure despite fresh data showing that US crude oil inventories fell by 17.05 million barrels in the last week of July, the most on record.
  • At the I&E window, Naira appreciated  by over 6%, resulting in a closing rate of N741.64 against the US dollar. Simultaneously, on the streets, Naira slid slighty by 0.64%, down to N867.50 against the US dollar.
  • US natural gas futures fell to below $2.5/MMBtu in the beginning of August, the lowest level since mid-June, prompted by prospects of lower demand and ample supplies.

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