Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years

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…Causing A Somber Trading Session In The Fixed Income Market

The FGN bond market opened the session on a bearish note, as investors digested the inflation report released for the month of February.

With inflation figures at 17.33%, it showed an 86bps increase from the preceding month (16.47% in Jan.), as the hike was due to the continued rise in food inflation.

We observed sell-offs across most bond maturities, as the market reacted negatively to higher-than-expected inflation figures. This, consequently increased average yields by 6bps across the benchmark curve.

With uncertainty in the short-term rates (Treasury Bills primary market auction) and with Bond yields playing at these low levels, we expect investors to remain stony-faced at the underperformance of yields and pursue other alternative investment options in the interim.

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Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years- Brand Spur Nigeria
Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years- Brand Spur Nigeria

Treasury Bills

The grim outlook in the bonds market, trickled into the Treasury Bills market, with the inflation report released this morning being the principal reason. We observed slight sell-offs at the short-end of the OMO Bills curve, as Banks looked to offload holdings to help funding pressure, as rates in the interbank market remain at double-digit levels despite OMO maturities of c.N113Bn. We also saw offers on the NTB side of the curve, as local investors were reluctant to invest ahead of the primary auction scheduled for later this week.

With Interbank rates on a high, we expect a quiet session in the secondary market as the market focuses on the NTB primary auction with muted expectations for another hike in stop rates with the volumes on offer relatively smaller than previous auctions.

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Money Markets

Liquidity in the interbank market opened at c.N78.92bn, with rates trending slightly downwards following inflows from OMO maturities of N113Bn. The ease in system liquidity allowed local banks to pay down funding from the CBN window, crashing borrowings by c.82.55% D/D at the window. The OVN and OBB rates dropped by c.225bps to close at 10.25% and 10.50% respectively.

We anticipate the market to continue trade at these levels, as no positive liquidity respite is expected to come in for the rest of the week.

FX Market

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The Naira depreciated by 85k at the I&E FX window, as the supply squeeze continued to affect the general flow of funds. Approximately $32.33m changed hands (36% lower D/D) as most banks remained bided between N394/$ and N413/$.

The spread between rates at the parallel market widened today, with the cash rate appreciating by N1.50k on one hand while the transfer rate depreciated by N1.00k to close at N494.00/$.

Eurobonds

In today’s trading session, the NIGERIA Sovereign papers traded on bullish sentiments as rates across the sovereign yield curve compressed by c.6bps, as the market awaits the outcome of the US FED meeting today and tomorrow. Investors shrugged off higher local inflation, amidst stability of oil prices above the $65pbl level.

It was a quiet session for the NIGERIA Corps tickers, with most tracked papers unchanged from the previous day’s levels. Yields on the FIDBAN 2022s expanded by 7bps while the UBANL 2022s closed lower by 4bps.

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Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years - Brand SpurInflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years - Brand Spur

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Inflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years - Brand SpurInflation Report: Nigeria’s Inflation Rises To 17.33%, Highest In 4 Years - Brand Spur

Latest News

Cityneon Raises S$235 Million; Well Positioned for Next Growth Chapter

  • The global experience entertainment company gets a S$235 million shot in the arm, closes its private fund raising in April 2021
  • Investors both new and existing include Singapore's Pavilion Capital, Seatown Holdings International and EDBI, Qatar's Doha Venture Capital and financial institutions and family offices in Singapore and China
  • These now join other existing Cityneon shareholders CITIC Capital, veteran entrepreneur and investor Mr. Johnson Ko, and Executive Chairman & Group CEO Mr. Ron Tan
  • Funding comes just after the Group acquired multi-year licensing rights for James Cameron's AVATAR touring exhibition, and two original artefacts IP on the ancient civilization Machu Picchu from Peru and Ramses the Great (Ramses II) from Egypt
  • Investments position the Group well to bring experiences across the globe, targeting to launch six experiences in China and five in the U.S. by the end of 2021, with more in other parts of the world

SINGAPORE - Media OutReach - 21 April 2021 - Cityneon Holdings ("Cityneon", the "Company"/collectively with its subsidiaries, the "Group") raised S$235 million in the most recent round of private funding. The latest round of funding adds seasoned investors to Cityneon's already strong stable of shareholders.

This funding round was led by Singapore's Pavilion Capital, Seatown Holdings International, EDBI, and Cityneon's Executive Chairman & Group CEO, Mr. Ron Tan. EDBI and Pavilion Capital are existing shareholders of Cityneon whilst new investors include Seatown Holdings International, Qatar's Doha Venture Capital, which will now own approximately 4 per cent of the Group, and other financial institutions and family offices in Singapore and China.

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These now join other existing Cityneon shareholders CITIC Capital, veteran entrepreneur and investor Mr. Johnson Ko, and Executive Chairman & Group CEO Mr. Ron Tan to form a new and strong shareholder base for the Group. Mr. Johnson Ko and Mr. Ron Tan remain as the largest shareholders of the company via their combined entity, West Knighton Limited.

The Group is now well positioned for its next growth chapter and will use the proceeds for capital expenditure that includes building more of its various intellectual property (IP) exhibition sets, totaling 24 travelling and four semi-permanent sets under the Studio IP partnerships and three travelling sets under the original artefact IP partnerships by the end of 2022.

Already, the Group just signed its fifth IP rights with Avatar from 20th Century Studios last year. Amidst the anticipation from Avatar fans worldwide, Cityneon will debut a multi-sensory Avatar exhibition in Chengdu, China in May 2021, ahead of the Avatar movie sequel which is slated for release in 2022. Avatar is the world's top grossing film of all time at over US$2.8 billion, and adding millions more after its successful re-release in China in March 2021. Avatar's director James Cameron has announced that he will be producing four sequels with 20th Century Studios, with the first sequel slated for release next year. Disney acquired 20th Century Studios for US$71 billion in 2019.

The Company also recently entered the original artefacts IPs space and will stage international exhibitions of the treasures of the ancient civilization Machu Picchu from Peru in Boca Raton, Florida and Pharaoh Ramses II from Egypt in Houston, Texas. These two experiences will start welcoming visitors in October and November 2021, respectively.

Other IP rights that the Group holds include partnerships with Universal Studios for Jurassic World: The Exhibition, Marvel for Avengers S.T.A.T.I.O.N., Lionsgate for The Hunger Games: The Exhibition and Hasbro for Transformers Autobot Alliance. All in, Cityneon holds the IP rights for five of the top 10 worldwide box office hits and two artefacts IP from Peru and Egypt. The Group expects to have six sets of its various IP rights travelling across China, and five travelling and permanent sets in the United States, with a few more in other parts of the globe.

The Group will also be reopening experiences that were temporarily closed in 2020, aiming to provide visitors with a safe entertainment option. These include the Marvel Avengers S.T.A.T.I.O.N. in Toronto, Canada that will be re-opening in May 2021; and the Marvel Avengers S.T.A.T.I.O.N. exhibition in Lotte Mall in Seoul, Korea in April 2021; the same exhibition space which previously housed Jurassic World: The Exhibition, another IP experience exhibition by the Group in 2019. In the past month, the Group also witnessed record visitor numbers at their semi-permanent installations in Las Vegas, USA, signaling a strong comeback and demand for their immersive experiences, as they step into the 6th year of operations there.

While there are exciting plans lined up, the Group is not resting on its laurels. More Hollywood IPs and artefact IPs can be expected, and there will be further announcements on new IP verticals in entertainment experiences that the Group is looking to enter.

Mr. Ron Tan, Executive Chairman & Group CEO of Cityneon, said: "It is exciting that the Company is going through such strategic expansion as one of the largest providers of exhibition entertainment experiences globally. The S$235 million funding round sets a solid foundation for us to invest in developing more of our entertainment experiences, to stage even more exhibitions of the five box office hits and two artefact IPs that we hold the rights to all over the world. I'm thankful that our strong investors base, now from Singapore, Hong Kong, China and the Middle East, have trust in our vision, and believe alongside us that this space of big ideas and big experiences will only grow."

By the end of this year, Cityneon will arguably be the largest provider of exhibition entertainment experiences internationally; with global footprints in more than 50 cities and welcoming 10 million unique visitors across the world by 2022.

Cityneon Holdings

With its global reach and international partnerships, Cityneon has the capability to serve its clients anywhere in the world. Cityneon was listed on the Mainboard of the Singapore Stock Exchange since 2005, and was privatized on February 2019 by West Knighton Limited, a company wholly owned by Cityneon's Executive Chairman and Group CEO, Ron Tan, together with Hong Kong veteran entrepreneur and investor, Johnson Ko Chun Shun. Johnson is a capital markets veteran and has held controlling interests and directorships in many listed companies. In May 2019, Cityneon welcomed CITIC Capital as a new shareholder, who holds approximately 10% shares in Cityneon. CITIC Capital is part of CITIC Group, one of China's largest conglomerates, and has over US$25b of assets under its management across 100 funds and investment products globally. Other institutional shareholders of the Group include EDBI - a Singapore government-linked global investor, and Pavilion Capital - a Singapore-based investment institution which focuses on private equity investments, that made strategic investments in August and October 2019 respectively, to support the Group's further expansion globally. For more information, please visit www.cityneongroup.com.


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