- Stock Market Ends Losing Streak, Posts Slight Gains
The nation’s stock market closed on a positive note on Thursday for the first time this year as it posted slight gains at the end of trading.
The All-Share Index rose by 0.62 per cent to close at 29,517.80 basis points.
The market capitalisation of equities listed on the Nigerian Stock Exchange increased from N10.940tn on Wednesday to N11.007tn on Thursday, while the year-to-date return settled at -6.1 per cent.
Activity level strengthened as a total number of 385.292 million shares valued at N3.068bn exchanged hands in 3,667 deals, representing a 64.1 per cent and 36.6 per cent increase in volume and value traded.
Analysts at Afrinvest Securities Limited said the market’s performance on Thursday was buoyed by gains in Guaranty Trust Bank Plc, Dangote Cement Plc and Zenith Bank Plc.
The top traded stocks by volume were Custodian Investment Plc (120.3 million units), Access Bank Plc (60.5 million units) and FBN Holdings Plc (48.9 million units), while the top traded stocks by value were Custodian Investment (N697.6m), Zenith Bank (N515.5m) and FBN Holdings (N347.2bn).
Performance across sectors was mixed as three of five indices closed in the green.
The banking index recorded the highest gain, advancing by 2.7 per cent on the back of price appreciation in Zenith Bank and Diamond Bank Plc.
Similarly, the industrial goods index appreciated by 2.24 per cent as a result of the gains recorded by Dangote Cement, Lafarge Africa Plc and Cement Company of Northern Nigeria Plc.
The oil and gas index posted a gain of 0.1 per cent on the back of price appreciation in Forte Oil Plc and Eterna Plc.
On the flip side, the insurance index depreciated by 2.05 per cent as major losses in NEM Insurance Plc, Linkage Assurance Plc and Mutual Benefits Assurance Plc dragged it lower.
The consumer goods index dipped by 1.75 per cent, dragged by losses recorded by Nestlé Nigeria Plc and Guinness Nigeria Plc.
Investor sentiment, as measured by market breadth, strengthened to 1.4x from 0.7x on Wednesday as 21 stocks advanced against 15 that declined.
The best-performing stocks were Law Union and Rock Insurance Plc, Julius Berger Nigeria Plc, Eterna Plc, GTB and Transnational Corporation of Nigeria Plc, whose share prices saw respective gains of 10 per cent, 9.86 per cent, 8.86 per cent, 6.07 per cent and 5.93 per cent.
The worst-performing stocks were Guinness Nigeria Plc, NEM Insurance, UPDC Real Estate Investment Trust, Resort Savings and Loans Plc and Linkage Assurance, which saw their respective share prices decline by 10 per cent, 9.95 per cent, 9.85 per cent, 9.76 per cent and 9.72 per cent.
Analysts at Afrinvest said bearish sentiment still clouded the market largely due to polity risks.
“We envision profitable opportunities in short-term trading on bellwethers as they have been the dominant influences of market performance in recent times,” they added.
Naira Gained Slightly at I&E Forex Window to N412.81/$US
Despite the Nigerian Naira trading at a record-low across the nation’s unregulated black market, the embattled currency opened slightly higher at N412.81 to a United States Dollar on Monday at the Investors and Exporters Forex Window, representing an increase of 0.08 percent when compared to the N412.88 it closed on Friday.
The improvement in Naira value was after the Central Bank of Nigeria (CBN) directed all depoisit money banks operating in the country to freeze bank accounts linked to Oniwinde Olusegun Adedotun, the founder of www.abokfx.com, a forex rate publishing platform.
Godwin Emefiele, the Governor, CBN had blamed black market and bureau de change operators for the constant plunge in Naira value against its global counterparts and insisted that forex rates remained the apex bank stipulated rates and not the unregulated rates imposed by speculators and hoarders and published to the public by Abokifx and other business platforms.
“There was a particular time I asked our colleagues to call the so-called owner of abokiFX, that we want to understand his model and how he came about advertising those rate, we find him as someone, a Nigerian who lives in England and conducts this nefarious activity on our economy.
“It is economic sabotage and we will pursue him, wherever he is, we will report him to international security agencies, we will track him, Mr Oniwinde, we will find you, because we cannot allow you to continue to conduct an illegal activity that kills our economy.” Emefiele said.
The governor further stated that the website was set up primarily manipulate and speculate forex rates. He said “they get naira loans, use to purchase dollars, take a position, change the rate over a given period, sell the dollars they purchased and make a profit, this is completely illegal, unacceptable and we will pursue them.”
On Friday, the last time Abokifx published unregulated forex rates, Naira was qouted at N570 to a United States Dollar while the British Pound and the Euro were quoted at N770 and N655, respectively.
U.S Dollar Jumps to Three Weeks High on Better Than Expected Retail Sales
The United States Dollar rose to a three-week high after data from the Commerce Department showed that the U.S retail sales rebounded in the month of August despite falling consumer confidence.
The US Dollar Index rose to 93.40 on Monday to extend Friday breakout above the 93.00 key resistance level.
U.S retail sales jumped to its highest in five months in the month of August to beat 0.8 percent decline predicted by experts. Retail sales grew by 0.7 percent in August to increase the odds of the US Federal Reserve announcing tapering during next week’s Federal Open Market Committee (FOMC) meeting.
“U.S. consumption is not slowing as quickly as it appeared a month ago despite the fading stimulus, and the Delta variant did not much affect the industries feeding into retail sales,” said Chris Low, chief economist at FHN Financial in New York. “The economy continued to hum in August.”
Against the Japanese Yen, the U.S dollar strengthened to 109.48 from 109.91 attained on Friday on broad-based selloff during London trading session, while heavy selloff plunged British pound against the U.S dollar 1.36610 before reboundling slightly to 1.36946.
The Euro dropped from 1.17883 recorded on Friday to 1.16995 on Monday during London trading session.
Naira Exchange Rates Today, Friday, September 17, 2021
Naira continued its downward trend against other currencies on Friday as it plunged to N570 against the United States Dollar at the black market. The local currency traded at N770 and N655 to British Pound and Euro, respectively.
Persistent forex scarcity amid a series of in effective policies have made access to forex impossible for most of businesses that operates in largely import dependent African biggest economy.
Nigeria’s forex reserves, the means in which the nation, service its dollar consuming 200 million population has been on a decline in recent weeks despite crude oil trading at over a year high of $73 a barrel. Some of the factors that have crippled the ability of central bank to cushion the economy with enough forex is low crude oil production, partly due to production cap, weak local manufacturing sector that has made the nation a huge import dependent economy, the ongoing crisis between herders and farmers, rising costs even with falling inflation, etc.
At the bureau de change section, Naira exchanged at N565, N775 and N655 to a United States Dollar, British Pound and Euro common currency.
The Central Bank of Nigeria (CBN) had stopped the sale of forex to the bureau de change operators to plug forex leakages and curb activities of criminal elements, the decision has worsen forex availability. See other forex rates below.
Naira Black Market Exchange Rates
Morning * Midday** Evening *** Final Rates
Bureau De Change Naira Rates
Central Bank of Nigeria’s Official Naira Rates
|9/16/2021||SOUTH AFRICAN RAND||28.3101||28.3446||28.3792|
N.B: These tables are updated three times a day.
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