Taiwo Adekeye, FMVA
January 5, 2024
Oil settled lower during Thursday’s volatile section as a larger-than-expected drop in crude oil inventories was outweighed by big weekly builds in petrol and distillate stocks. Brent crude settled down 0.8% to close at $77.59. While the U.S. West Texas Intermediate crude futures were down by 0.7% closing at $72.19.
Nigeria: Naira poses post Santa Claus gains of 13.51% against the USD
The NGN gained against the USD on Thursday at the official market, making it the first bullish movement for the year. The domestic currency appreciated 13.51% to close at N895.23 to a dollar. The strength can be linked to the recent Afrieximbank disposal of $2.25 billion out of the $3.3 billion foreign exchange (FX) support facility to relieve the acute liquidity shortage in the country’s FX market. However, In the parallel market, the NGN declined by 0.81% against the USD to close at N1240.26/$1.
South Africa: South African rand little changed as PMI fell to 49.0
The S&P Global South Africa PMI fell to 49.0 in December from 50.0 in November, indicating a slight worsening in private-sector business conditions. The rand traded at 18.69 against the dollar, 0.1% stronger than its previous close. Additionally, The Johannesburg Stock Exchange’s Top-40 index closed up over 0.1%, while the benchmark 2030 government bond was slightly stronger, the yield down 1.5 basis points to 9.900%.
Zambia: Zambia aims to agree conditions for debt relief by Q1′ 2024
Zambia hopes to agree on key conditions for restructuring $3 billion of its bonds no later than Q1’ 2024. its official creditors, which include China and members of the Paris Club of creditor nations, rejected a preliminary restructuring deal in November. Zambia, which is one of the African continent’s largest copper producers, defaulted on its debts three years ago during the COVID-19 pandemic, and its restructuring efforts have been beset by delays.
India: Rupee closes slightly higher supported by dollar inflows
The Indian rupee ended slightly stronger above its Asian peers on Thursday, aided by dollar inflows. The rupee closed at 83.23 against the U.S.D, higher by 0.05% compared with its close at 83.2750 in the previous session.
China: China’s industrial profits post double-digit gains
China’s November industrial profits posted double-digit gains as overall manufacturing improved, although soft demand continued to constrain business growth expectations. The 29.5% profit rise came on top of a 2.7% increase in October and alongside a pickup in industrial output in November. November profit rise was an accelerated uptick in industrial profits and returns on investments over the month.