E-Financial
Risk Appetite Flickers to Life on Vaccine Hopes, Nigeria Inflation in Focus
By Lukman Otunuga, Senior Research Analyst at FXTM,
Investors across the globe have been injected with a renewed dose of confidence towards risk as governments relax lockdown measures and first human trial results raise hopes for a coronavirus vaccine.
The mood across financial markets is quite encouraging and this positive vibe should support global stocks and emerging markets in the week ahead. However, questions should be raised over the return in risk sentiment given how US-China trade tensions have made an unwelcome return. Concerns remain elevated over slowing global growth despite countries easing lockdown measures while fears mount around a second wave of coronavirus infections.
In Nigeria, the All-Share Index (ASI) also rose by 0.29% to close at 23,941.75 points on Monday and could mirror similar gains on Tuesday amid the positive vibe. While global equity bulls may be in the driving seat for now, bears are lurking in the corner waiting for another opportunity to pounce.
Nigeria Inflation in focus but major risk event remains GDP report
Repeated signs of rising inflationary pressures in Nigeria have squashed hopes over the central bank of Nigeria (CBN) cutting interest rates to stimulate economic growth.
The annual inflation rate in Africa’s largest economy rose for the seventh straight month to 12.26% in March amid border closures and the new VAT tax rate. Given the Naira’s weakness over the past few weeks amid severely depressed oil prices, inflation is forecast to hit 12.9% in April. Such a figure may place the CBN in a tight spot, especially if first quarter GDP figures scheduled for release next week confirm that Nigeria experienced an economic contraction last quarter.
King Dollar to maintain grip on iron throne
The mighty Dollar should reign supreme this week despite the semblance of stability enveloping financial markets.
Although investors are clearly hopeful over economies re-opening after an extended lockdown period, global macroeconomic conditions remain depressing while renewed trade tensions are bound to hit sentiment. As risk aversion makes a return and market players rush towards safety, one of the first destinations is likely to be the Dollar.
Another day, same old story for Pound
The path ahead for the British Pound is filled with many obstacles and dead ends as fears over a no-deal Brexit return to the scene.
One can’t help but feel a familiar sense of déjà vu as the UK government prepares for its final round of talks scheduled in June to try and avert a no-deal Brexit outcome. To rub salt into the wound, economic data from the United Kingdom remains discouraging with the number of people claiming unemployment benefits soaring to 2.097 million in April.
With the fundamentals not in favour of the Pound, it may be only a matter of time till the technical paint a similar picture. The GBPUSD is under pressure on the daily charts and may trend lower if prices break below 1.2200. Sustained weakness below this level could open the doors towards 1.2000.
Euro eyes 1.10 but upside capped by fundamentals
Where the Euro concludes this week will be heavily influenced by the pending Purchasing Managers Index data scheduled for release over the coming days.
A disappointing set of economic data may put an end to the current rally with 1.1000 acting as a ceiling. Looking at the technical picture, the EURUSD remains a wide range on the daily charts with support at 1.0770 and resistance 1.1000. Expect the currency pair to find comfort within these levels until a decisive breakout is achieved.
Commodity spotlight – Gold
Gold should remain in fashion despite stock markets rising and economies easing lockdown measures.
The precious metal remains supported by global growth fears, lower interest rates across the globe and fears around a second wave of coronavirus outbreak. Gold is trading at levels not seen in more than 7 years above $1430 and has gained over 14% year-to-date. A solid daily close above $1430 may pave the way back towards $1765 and $1770. Alternatively, sustained weakness below $1720 could open the doors back towards $1700.
E-Financial
First Securities Brokers Empowers Nigerians to Trade in the Stock Market with the Launch of FirstInvest App
First Securities Brokers, one of Nigeria’s leading stockbroking firms and a subsidiary of FirstHoldCo Plc, is pleased to announce the official launch of the FirstInvest App, an innovative mobile investment platform designed to make stock market investing simpler, faster, and more accessible for Nigerians.
The FirstInvest App offers investors a seamless digital experience, enabling them to open and manage their investment accounts, monitor their portfolios, and trade equities listed on the Nigerian Exchange (NGX) directly from their mobile devices.
Designed with both new and experienced investors in mind, the platform combines convenience, security, and ease of use to help users make informed investment decisions anytime and anywhere.
As Nigeria continues to embrace digital financial services, the FirstInvest App reinforces First Securities Brokers’ commitment to driving financial inclusion and expanding access to wealth creation opportunities through technology.
Speaking on the launch, Fiona Ahmed Ahimie, Managing Director of First Securities Brokers, said: “The launch of the FirstInvest App represents another significant milestone in our digital transformation journey and our commitment to delivering innovative investment solutions to our clients.
“We understand that today’s investors value convenience, speed, and accessibility. FirstInvest has been developed to provide exactly that: a secure and intuitive platform that empowers individuals to participate confidently in the capital market from wherever they are.”
She added: “Our goal is to remove the traditional barriers associated with investing by placing the power of timely investment and decision making in the stock market directly in the hands of Nigerians. Whether you are taking your first investment step, actively managing your portfolio or just evaluating your investment, FirstInvest provides the tools and flexibility needed to support your financial aspirations.”
The app delivers a range of features designed to enhance your investing experience, including: Secure digital account opening and onboarding, Real-time access to investment portfolios, Buy and sell Nigerian equities with ease, User-friendly trading interface, Secure transaction processing, Convenient access to market information and investment opportunities.
The launch of FirstInvest aligns with First Securities Brokers’ broader strategy of leveraging technology to improve customer experience while supporting the growth of retail participation in Nigeria’s capital market.
First Securities Brokers remains committed to providing trusted investment advisory services, innovative financial solutions, and exceptional customer service, helping clients build and preserve wealth across generations. The FirstInvest App is now available for download on the Google Play Store and the Apple App Store.
The next currency crisis could accelerate the shift of the roughly $315 billion global stablecoin market into a digital-dollar alternative for citizens in emerging economies, notably in regions like sub-Saharan Africa and Latin America.
As local fiat currencies face devaluation and high inflation, citizens and businesses are increasingly utilizing smartphone-based stablecoins (such as USDT and USDC) as hedges and primary mediums of exchange.
According to the International Monetary Fund (IMF), the rapid adoption of dollar-linked digital assets—particularly in countries heavily affected by inflation like Nigeria—poses significant risks to monetary sovereignty.
With up to 95% of surveyed individuals in some African markets preferring to receive payments in stablecoins over local fiat, the rising volume of these decentralized, cross-border channels weakens domestic currency demand and dilutes the effectiveness of local monetary policy.
IMF observed in a report titled “Stablecoins in Nigeria: A Growing Cross-Border Channel” noted that the widespread use of stablecoins poses risks to monetary sovereignty, particularly as more individuals and businesses turn to digital dollar-linked assets for savings and transactions.
Nodding in agreement is Future Investment Initiative Institute (FII Institute), a non-profit organisation run by the Public Investment Fund, Saudi Arabia’s main sovereign wealth fund.
FII Institute said that central banks face structural challenges.
And according to the institute, when citizens move savings out of national banks and into private digital wallets, conventional capital controls lose their grip.
Institutions like the Bank for International Settlements warn that interest-bearing stablecoins compete directly with domestic-currency deposits, complicating financial oversight and making smartphone-based transfers incredibly difficult for authorities to monitor.
In Nigeria, Naira depreciation has pushed users toward dollar-stablecoins, according to report by Gino Matos in cryptoslate.com.
A stablecoin is a type of cryptocurrency designed to maintain a steady value by pegging its price to a reserve asset, such as a fiat currency (e.g., the U.S. dollar) or a commodity (e.g., gold).
They act as a bridge between traditional money and the digital asset world, providing the speed of crypto without the extreme price swings of assets like Bitcoin.
Federal government has reopened three federal government of Nigeria (FGN) bond issues valued at N1.2 trillion for subscription as part of efforts to raise long-term funds from the domestic debt market.
The Debt Management Office (DMO), which announced the offer on Tuesday, said the three reopened bond issues are each valued at N400 billion.
According to the DMO, the first offer is the January 2035 FGN Bond, a 10-year reopening, carrying an interest rate of 22.60 per cent per annum.
The second is the May 2028 FGN Bond, a 15-year reopening, with a coupon rate of 15.45 per cent per annum, while the third is the June 2037 FGN Bond, a 20-year reopening, also valued at N400 billion.
The office said the bond auction is scheduled for July 20, while successful subscriptions will be settled on July 22.
It explained that the bonds are offered at N1,000 per unit, with a minimum subscription of N50 million and additional investments in multiples of N1,000.
For the reopened bonds, the DMO said successful bidders would pay a price based on the yield-to-maturity that clears the auction, in addition to any accrued interest on the instruments.
Interest on the bonds will be paid every six months, while the principal will be repaid in full on the respective maturity dates.
The DMO reaffirmed that FGN bonds are backed by the full faith and credit of the Federal Government and constitute obligations chargeable on the general assets of the federation.
It added that the bonds qualify as trustee investment securities under the Trustee Investment Act and enjoy tax exemptions for eligible investors, including pension funds, under the Company Income Tax Act and Personal Income Tax Act.
The bonds are listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange and also qualify as liquid assets for banks in computing their liquidity ratios.
FGN bonds are long-term debt instruments through which investors lend money to the Federal Government in exchange for periodic interest payments and repayment of the principal at maturity.
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