Think Thursday - Nigeria’s Market Deepens Amid Oando and Sterling Moves; Global Commodity Shifts and Multibillion Trade Deals Guide Investor Strategy
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Market Overview
Good evening and welcome to today’s market briefing, where Nigeria’s capital Nigerian markets see heightened activity with Oando’s rights issue, Dangote Cement’s commercial paper, and government revenue reforms, while global developments including Indonesia-US trade deals, India’s rare-earth initiatives, and Gunvor’s buyout highlight shifts in energy, critical minerals, and industry; investors should watch currency trends and key Nigerian sectors like finance, infrastructure, and trade corridors.
Nigerian News & Market Update
Oando to raise ₦220.79billion via rights issue:
Oando Plc has applied to the Nigerian Exchange Limited to raise ₦220.79billion through a rights issue of 4.42billion shares at ₦50 per share, subject to regulatory approvals. - Punch
Recapitalisation: Sterling HoldCo allots shares after oversubscription:
Sterling Financial Holdings Company Plc has begun allotting shares for its 12.58billion-unit public offer at ₦7.00 per share after a 109.79% oversubscription, strengthening its capital base and subsidiaries following regulatory approvals. - Punch
Tinubu signs Executive Order that slashes NNPC’s revenue, directs remittance to Federation Account:
Bola Tinubu has signed an executive order stopping NNPC Limited from retaining key oil revenue deductions, directing full remittances including the 30% frontier exploration fund and management fees into the Federation Account to boost government revenue. - PremiumTimes
NGX lists Dangote Cement commercial paper, deepens debt market:
Nigerian Exchange Limited has listed Dangote Cement Plc’s ₦119.87billion Series 1 and 2 commercial papers, marking its first CP admission and deepening Nigeria’s short-term debt market. - PremiumTimes
BUA, AD Ports, MAIR plan Nigeria–UAE food, trade corridor:
BUA Group has signed an MoU with AD Ports Group and MAIR Group to establish a Nigeria–UAE agro-processing and maritime logistics corridor linking West Africa to the Gulf. - TheSun
Nigeria Sectoral Indices Performance
The table below shows that Most Nigerian equity indices posted gains, led by the Lotus Index (+2.70%) and NGX Banking Index (+2.63%), reflecting strong market momentum. The NGX Oil/Gas Index was the only sector to decline slightly (-0.11%), despite robust year-to-date gains of 52.65%. Overall, all major indices show solid week-to-date, month-to-date, and year-to-date growth, indicating sustained investor confidence across the Nigerian market.
Fixed Income (FGN Bonds)
Global News & Market Update
Lithium Americas to spend up to $1.6 billion for Thacker Pass Phase 1 in 2026:
Lithium Americas plans to spend up to $1.6billion in 2026 on Phase 1 of the Thacker Pass project, a joint venture with General Motors, targeting late-2027 completion. - Reuters
Gunvor management buyout values trading group at around $5 billion:
A management buyout of Gunvor Group Ltd has valued the group at around $5 billion, with founder Torbjorn Tornqvist providing a $4 billion loan to employees for the buyout, which will be repaid over 10 years from annual dividends. - Reuters
India targets rare‑earth permanent magnet production by year‑end, minister says:
India aims to start domestic production of rare earth permanent magnets by the end of 2026 to cut import dependence and meet growing industrial demand. - Reuters
Indonesia, US firms sign $38.4 billion in trade, investment deals:
Indonesia and U.S. firms signed $38.4 billion in trade and investment deals covering agriculture, mining, energy, technology, and critical minerals ahead of a formal bilateral trade pact. - Reuters
Bank Indonesia holds rates steady, focus remains on ‘undervalued’ rupiah:
Bank Indonesia kept its benchmark rate at 4.75% to support the rupiah, which it considers undervalued, while planning to resume rate cuts once currency pressures ease. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Equity markets were broadly lower, with the DJIA, S&P 500, Nasdaq 100, and Euro Stoxx 50 all posting declines, while volatility, measured by the VIX, rose 2.54%, signaling investor caution. Energy prices gained, led by WTI (+1.94%) and Brent (+1.65%), while soft commodities such as cocoa (-6.91%) and orange juice (-2.99%) saw notable losses. Metals and grains were mixed, with gold up +0.35%, copper down -0.73%, soybeans slightly higher, and corn lower -0.50%, while major currencies saw small moves, with the USD and JPY strengthening and the EUR and GBP weakening.
Fixed Income (USA Bonds)
Events
Conclusion
Investors may anticipate continued market depth and capital inflows in Nigeria as regulatory approvals for rights issues and commercial papers are finalized, while global supply-chain shifts and critical mineral developments could influence commodity prices and trade-linked equities. Strategic positioning in energy, infrastructure, and export-oriented sectors is likely to offer both opportunities and caution amid evolving geopolitical and macroeconomic factors.
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