Nigeria | - Part 82

Nigerian currency is overvalued says Africa Economist, John Ashbourne

LONDON (Capital Markets in Africa) — I would say that the currency remains overvalued. Nigeria’s balance of payments position has changed quite radically since the price of oil fell so sharply, and the currency has yet to fully adjust to this. Given low oil prices, relatively high inflation, and generalised dollar strength we would have expected that the naira would have weakened over the course of the second quarter. Indeed, almost every other SSA currency…

Nigerian naira is trading at fair value says Pabina Yinkere

Posted on by The Editorial Team

Lagos, Nigeria (Capital Markets in Nigeria) — Is naira overvalued or undervalued? It depends on which methodology is used; results could point to an overvaluation or undervaluation. Using a relative PPP methodology, the result suggests the currency is trading near its fair value at N199-200/USD and we are somewhat inclined to this conclusion. Practically, it is unlikely to trade around these levels under a floating market arrangement as the market is pricing in economic risks associated…

Moody’s Assigns First-Time Ratings to Nigeria’s Sterling Bank

Posted on by The Editorial Team

LAGOS, Nigeria (Capital Markets in Africa) —- Moody’s Investors Service has today assigned first-time ratings to Sterling Bank plc (Sterling): B2/Not Prime Local and Foreign Currency issuer and deposit ratings, which are underpinned by a b3 Baseline Credit Assessment (BCA). The outlook on all ratings is stable. Moody’s also assigned a Counterparty Risk Assessment (CRA) of B1(cr)/Not Prime(cr). Sterling Bank’s b3 BCA reflects (1) solid asset quality metrics and provision coverage; (2) improvements to the…

Nigerian Naira and Kenyan Shilling overvalued say Renaissance Capital

Posted on by The Editorial Team

Johanneburg, South Africa (Capital Markets in Africa) — Renaissance Capital finds the Kenyan shilling to be especially vulnerable but believes the Nigerian naira should weaken more than the shilling. Sub-Sahara African (SSA) currencies have in recent months come under significant pressure. Of eight SSA currencies we analysed, we found the Kenyan shilling to be especially vulnerable (as it is an overvalued currency that depreciated by less than the EUR/$). However, Nigeria’s limited policy space, implies the naira should…

Sub-Saharan Africa’s growth slows: A look at Nigeria and Kenya by Renaissance Capital

Posted on by The Editorial Team

Lagos, Nigeria (Capital Markets in Africa) — Low commodity prices, soft global demand and domestic structural constraints have conspired to slow growth in Sub-Saharan Africa’s oil exporting and importing countries alike. We lower our 2015 growth forecast for Kenya to 5.2% (vs 6.0% previously), and highlight downside risks to Nigeria’s. Kenya: Quicker growth is deferred We expect the (investment-driven) acceleration in Kenya’s growth to be deferred, partly due to tighter monetary policy. Although growth quickened in 1Q15…

African Stock Market Mid-Year 2015 Report: BRVM June leader, Botswana Q2 winner, Malawi YTD champ

Posted on by The Editorial Team

Lagos, Nigeria, Capital Markets in Africa — African stock market performance measured by country equity benchmark index return ended in red for the month of June, with seven advancers and eleven decliners on the local currency basis. The June monthly returns ranges from -4.7% registered by the Egyptian stock markets (measured by EGX30 index) to 5.49% recorded by Ugandan equity markets. Looking it from the quarterly return basis for local investor, African equity performance ended on neutral…

The Lafferty rating rates Nigerian banks ahead US, S/Africa, Europe, Australia, Canada in quality

Posted on by The Editorial Team

Lagos, Nigeria (Capital Markets in Africa) — In terms of their overall quality, Lafferty Bank Ratings reports that Nigerian banks rank well among banks across the world. A cross-border comparison shows that Nigeria ranks about 34.0, higher than South Africa which ranks 30.0, Canada 23.0, United States 20.0, Australia 22.0, and Europe 18.0. Nigerian banks’ financial ratios are particularly good and Michael Lafferty, chairman, Lafferty Group, reckons that the banks’ overall ratings will improve considerably…

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