CAPITALDIGEST DAILYNEWS, 27/07/2026

CRUDE CROSSES $100 AS RED SEA TENSIONS DISRUPT SUPPLIES

Global oil prices climbed above $100 per barrel on Thursday for the first time in nearly two months after escalating attacks on commercial shipping in the Red Sea heightened fears of prolonged supply disruptions across key global energy routes. Brent crude, the international benchmark, rose to $100.69 per barrel in mid-morning trading, gaining more than seven per cent after touching an intraday high of $101.01. According to Oilprice.com, US West Texas Intermediate also recorded sharp gains, while the entire Brent forward curve strengthened as traders factored in growing risks to global crude supplies. The latest rally followed claims by Yemen’s Houthi rebels that they had struck two Saudi oil tankers in the Bab el-Mandeb Strait after announcing a naval blockade of Saudi oil exports earlier this week. The attacks reportedly forced several commercial vessels to reroute or delay passage through the strategic waterway, threatening Saudi Arabia’s key export corridor used to bypass disruptions in the Strait of Hormuz. The fresh escalation has fuelled concerns that the Middle East supply crisis is spreading beyond Hormuz, placing two of the world’s most important oil shipping routes under simultaneous pressure. Brent has now surged by about 20 per cent in the past two weeks as repeated attacks on commercial shipping, renewed fighting involving Iran and mounting export disruptions erased earlier expectations that geopolitical tensions would ease quickly. The rally has also been supported by disruptions outside the Gulf. Kazakhstan has reportedly begun cutting oil production after drone attacks shut down tanker loadings at the Caspian Pipeline Consortium terminal on the Black Sea. Indian state-owned refiners have also suspended Iraqi crude loadings because of shipping risks through the Strait of Hormuz, while Russian fuel exports remain constrained following months of Ukrainian drone strikes on refineries. The physical oil market is tightening alongside the futures rally, with governments drawing down strategic petroleum reserves to cushion supply shortages. Commercial crude inventories have reportedly declined sharply, while China has reduced imports by relying on stockpiles accumulated before the Middle East conflict, reducing another key buffer against supply shocks. Brent’s return to triple digits reverses the optimism that followed the memorandum of understanding between the United States and Iran, which had briefly raised hopes that Middle East crude exports would normalise. Those expectations have since faded as hostilities expanded from the Strait of Hormuz to the Red Sea, raising fears of wider disruptions to global oil trade. The latest price surge could have mixed implications for Nigeria. While higher crude prices may increase the country’s export earnings and improve government revenues, they could also raise the cost of imported refined petroleum products, worsen inflationary pressures and increase the burden on fuel consumers if domestic supply remains insufficient.

 INVESTORS GAIN N1.755TN AS NGX EXTENDS BULLISH RUN

The Nigerian equities market opened the trading week on a strong footing, extending its bullish momentum as overall market capitalisation advanced by N1.755tn, reflecting sustained investor confidence and continued buying interest in large-cap stocks. The benchmark All-Share Index gained 2,721.83 points, representing an appreciation of 1.12 per cent to close at 246,183.96 points. Consequently, total market capitalisation rose significantly to settle at N158.812tn. The session’s performance was primarily anchored by price gains across large and medium-capitalised stocks, including BUA Cement, Guinness Nigeria, First HoldCo, Nigerian Exchange Group, and Custodian Investment. Despite the surge in market valuation, overall investor sentiment was slightly negative, with 31 decliners narrowly outpacing 29 gainers. Custodian Investment and NEM Insurance emerged as the session’s top price performers, each rising by the maximum daily limit of 10.00 per cent to close at N75.90 and N30.80 per share, respectively. BUA Cement followed with a 9.98 per cent advance to close at N303.10 per share, while First HoldCo rose 9.95 per cent to N105.50, and FTN Cocoa Processors appreciated 9.94 per cent to settle at N9.29 per share. On the losing side, Sunu Assurance topped the decliners’ chart after shedding 10.00 per cent to close at N3.60 per share. Tripple Gee & Company followed with a 9.77 per cent decline to N3.51, while ABC Transport dropped by 9.62 per cent to N7.05. Abbey Mortgage Bank also lost 9.00 per cent to close at N9.10, while Wapic Insurance depreciated 7.69 per cent to settle at N2.40 per share. Activity on the trading floor improved notably as the total volume traded increased 24.17 per cent to 851.634 million units, valued at N49.595bn across 56,873 deals. Transactions in the shares of First HoldCo led the volume chart, accounting for 203.938 million shares worth N21.515bn. 

NIGERIA’S MONEY SUPPLY HITS N133.25TN DESPITE TIGHT MONETARY POLICY

Nigeria’s broad money supply climbed to N133.25tn in June 2026, up from N129.21tn in May, despite the Central Bank of Nigeria maintaining a benchmark Monetary Policy Rate at 26.5 per cent. This underscores continued growth in liquidity even amid the country’s tight monetary policy stance. By implication, businesses and households had more money to spend and invest in June than in May. The data, released by the CBN on Wednesday, shows a N4.04tn month-on-month increase, signalling that liquidity in the economy continued to expand, driven mainly by higher domestic assets and growth in quasi-money. Broad money is a comprehensive measure of the total money supply in an economy. It includes physical cash and highly liquid “narrow money”, alongside less liquid assets such as savings accounts, time deposits, and money market funds that can be quickly converted into cash, according to Investopedia. Quasi-money, which consists largely of savings and time deposits, increased to N88.54tn from N84.58tn, while demand deposits edged higher to N39.78tn from N39.43tn. Meanwhile, currency held outside the banking system declined to N4.92tn, compared with N5.19tn in the previous month, suggesting more cash remained within the formal banking system. Further analysis of the statistics showed that net domestic assets rose 4.37 per cent, increasing from N102.26tn in May to N106.73tn in June. In contrast, net foreign assets slipped 1.56 per cent, falling from N26.95tn to N26.53tn over the same period. Overall, broad money supply expanded 3.11 per cent month-on-month, reflecting the continued increase in liquidity despite the CBN’s tight monetary policy stance. The increase in money supply comes as the Central Bank of Nigeria continues to balance liquidity management with efforts to curb inflation and preserve macroeconomic stability. Analysts warn that the expansion in money supply could make it more difficult for the apex bank to contain inflation. The latest figures follow the CBN’s decision to retain the Monetary Policy Rate at 26.5 per cent at the Monetary Policy Committee meeting held this week. The committee also left all other monetary policy parameters unchanged, arguing that maintaining a tight policy stance would help sustain the disinflation process and support macroeconomic stability.

NGX GAINS N307BN AS MARKET CAPITALISATION RISES TO N159TN 

The Nigerian Exchange sustained its upward momentum on Tuesday as investors added N307bn to market capitalisation, driven by renewed buying interest in medium-cap stocks that easily outweighed profit-taking in selected equities. Total market capitalisation rose from N158.812t at the opening of trading to close at N159.119t, while the NGX All-Share Index advanced 0.19 per cent to reach 246,659.56 basis points, up from 246,183.96 points. The positive session reflected continued investor appetite for fundamentally strong equities following the market’s robust start to the week, with buying interest heavily concentrated across the real estate, hospitality, healthcare, and industrial sectors. Market breadth closed firmly in positive territory, with 34 gainers outperforming 22 decliners, underscoring broad-based buying activity across key sectors of the local exchange. REIT and Thomas Wyatt Nigeria Plc led the gainers’ chart, both appreciating 9.86 per cent to close at N11.70 and N3.72, respectively. Ikeja Hotel Plc gained 9.53 per cent to close at N46.55, while The Initiates Plc rose 9.52 per cent to N33.95 and Neimeth International Pharmaceuticals Plc increased 9.47 per cent to N9.25. Conversely, FG142027S1 headlined the top decliners after shedding 9.98 per cent to close at N67.52, followed closely by Mecure Industries Plc, which fell 9.95 per cent to N76.95. HMCALL Plc dropped 9.86 per cent to N3.29, Consolidated Hallmark Holdings lost 9.85 per cent to N3.02, and Trans-Nationwide Express Plc depreciated 9.68 per cent to N2.80. Meanwhile, major equities, including Seplat Energy, Presco Plc, John Holt Plc, Julius Berger Nigeria Plc, Golden Guinea Breweries Plc, Cadbury Nigeria Plc, and Nestlé Nigeria Plc, all closed flat for the session. Market participants expect investors to maintain a cautiously optimistic stance in the near term by continuing to position in fundamentally sound stocks ahead of upcoming corporate disclosures, though intermittent profit-taking may emerge as traders lock in recent gains. 

BANKS’ MAXIMUM LENDING RATE DROPS TO 33.16%

Nigeria’s average maximum lending rate eased to 33.16 per cent in June 2026, down from 34.78 per cent in May, reflecting a modest decline in borrowing costs as the Central Bank of Nigeria  maintained its benchmark interest rate amid improving macroeconomic conditions. Data from the CBN’s latest Money Market Indicators showed the decline came after the Monetary Policy Committee kept the Monetary Policy Rate unchanged at 26.5 per cent, a position it has maintained since February following a 50-basis-point rate cut. Despite the monthly moderation, borrowing costs remain significantly above last year’s levels. The average maximum lending rate stood at 29.51 per cent in June 2025, indicating a year-on-year increase of 3.65 percentage points. The maximum lending rate represents the highest interest rate banks charge customers on loans and is widely tracked as an indicator of credit conditions in the economy. High lending rates typically discourage borrowing, investment and business expansion. The latest decline marks only the second meaningful easing in lending rates this year. The average maximum lending rate began the year at 32.68 per cent in January before rising to 35.17 per cent in February, where it remained through April despite the CBN’s decision to lower the policy rate.The disconnect between monetary policy easing and commercial lending rates reflects the banking sector’s slow transmission of lower policy rates to borrowers, which analysts say continues to constrain private sector credit. At its latest meeting, the MPC voted unanimously to retain all monetary policy parameters, citing exchange rate stability, moderating inflation and uncertainty in the global economy, including geopolitical tensions in the Middle East and concerns over the outlook for the US economy. CBN Governor Olayemi Cardoso said the committee’s decision was based on the need to preserve macroeconomic stability while allowing previous policy measures to continue filtering through the economy. Businesses have continued to express concern over elevated borrowing costs, particularly manufacturers and small enterprises already contending with foreign exchange reforms, higher energy prices and increased operating costs. According to the data from the Manufacturers Association of Nigeria, commercial bank credit allocation to manufacturing contracted to N6.61tn in December 2025 from N8.53tn in December 2024.