RFA Breakfast Paper - May 7, 2026
South Africa's FX Reserves Fall to Four-Month Low
Gross foreign exchange reserves in South Africa declined to $77.09 billion in April 2026 from $77.76 billion in March, marking the lowest level since December 2025. Despite the monthly decline, reserves remained well above the $67.59 billion recorded a year earlier. According to the South African Reserve Bank, movements in reserves were influenced by a $235.8 million foreign exchange loan received from the French Development Agency on behalf of the government, alongside valuation effects from currency and asset price changes. Foreign currency reserves fell to $51.7 billion from $52.7 billion, while gold reserves increased slightly to $18.7 billion amid higher gold prices. SDR holdings also edged up to $6.7 billion, while the central bank’s forward position remained unchanged at $0.59 billion.
U.S. Markets Slip as Rising Oil Prices and Geopolitical Uncertainty Weigh on Sentiment
U.S. equities rallied strongly on Wednesday, with both the S&P 500 and Nasdaq closing at fresh record highs as improving geopolitical sentiment fueled a broad-based market advance. Investor optimism strengthened following reports that the United States and Iran could reach a peace agreement in the coming days, easing concerns over prolonged tensions in the Middle East. The Nasdaq outperformed major indexes, gaining 2.02% to close at 25,838.94, while the S&P 500 advanced 1.46% to settle at 7,365.12. The prospect of reduced geopolitical risk also triggered a sharp decline in oil prices, with WTI crude falling roughly 7% toward the $95 level. Lower energy prices helped ease near-term inflation concerns, leading Treasury yields lower and providing further support for equities. Overall, the session reflected renewed bullish sentiment across global markets, with investors increasingly positioning for continued earnings strength and a more stable macroeconomic environment.
Nigerian Equities Retreat as Profit-Taking in Industrial and Banking Stocks Drives Sharp Decline
The Nigerian equity market closed lower at the end of today’s trading session as investors intensified profit-taking activities across major large-cap stocks, particularly within the Industrial Goods and Banking sectors. The renewed selling pressure dragged key market indicators into negative territory despite a broadly positive market breadth, where gainers outpaced decliners. Consequently, the NGX All-Share Index declined by 2,994.90 points to close at 239,734.61, while market capitalization lost ₦1.92 trillion to settle at ₦153.86 trillion, representing a -1.23% decline in both indicators. The session reflected cautious sentiment among investors, with market participants taking profits after recent gains in heavyweight counters. Despite the bearish close, trading activity remained strong, signalling sustained investor participation across the market. Total volume traded increased by +29.34%, while total value traded rose by +21.44%, with investors exchanging approximately 1.83 billion units valued at ₦72.17 billion across 81,131 deals. Sectoral performance remained broadly positive, with buying interest persisting across selected sectors of the market. However, sustained profit-taking in heavyweight Industrial and Banking stocks overshadowed gains recorded elsewhere, ultimately steering the broader market to a weaker close.
