- Equities Appreciate Marginally Despite 23 Decliners
The Nigerian equities market recorded N4bn marginal appreciation despite 23 stocks closing in the red amid 21 gainers.
The Nigerian Stock Exchange market capitalisation closed at N13.556tn from N13.552tn.
A total of 462.670 million shares worth N26.809bn exchanged hands in 5,090 deals.
The NSE All-Share Index advanced by 0.03 per cent at the close of trades on Tuesday, thus, the year-to-date return settled at 44.84 per cent. The volume traded and market value of transactions advanced by 31.97 per cent and 445.40 per cent, respectively.
Union Bank of Nigeria Plc outperformed other counters, as the ticker gained 10.01 per cent to close at a new year high of N7.91. Other top gainers in the day were Diamond Bank Plc, Berger Paints Nigeria Plc, Caverton Offshore Support Group Plc and Nascon Allied Industries Plc, which appreciated respectively by 7.14 per cent, 4.90 per cent, 4.55 per cent and 4.06 per cent.
On the other hand, FCMB Group Plc declined by 4.69 per cent, thus leading the laggards’ chart to close at N1.22. It was followed by Fidelity Bank Plc, Nigerian Aviation Handling Company Plc, Linkage Assurance Plc and Sterling Bank Plc, which dropped by 4.64 per cent, 4.64 per cent, 4.62 per cent and 4.59 per cent, accordingly.
Sector performance as measured by the NSE sector indices showed that the NSE food/beverage index gained 0.27 per cent to emerge as the only index to record an advancement. The NSE oil/gas, NSE industrial goods, NSE insurance and NSE banking indices declined by 0.40 per cent, 0.29 per cent, 0.27 per cent and 0.13 per cent, respectively.
Commenting on the market’s performance, analysts at Meristem Securities said, “Activities in the equities market were relatively mixed during today’s trading session. However, the buy pressures noted on certain tickers in the consumer goods space alongside the 0.04 per cent gain by Dangote Cement Plc drove the bourse to the positive territory. We expect this current mood to be sustained for the rest of the week.”
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
CBN Injects $11.5bn Into the Economy in the First Quarter
The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.
According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.
A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.
The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.
Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.
But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.
Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”
DSS Arrests EFCC, Acting Chairman, Magu
DSS Arrested Magu, the Acting Chairman of EFCC
The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.
The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.
The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.
But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.
This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.
The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.
Again CBN Debits Banks N118 Billion for Failing to Meet CRR Target
CBN Debits Deposit Money Banks N118bn for Not Meeting CRR Target
The Central Bank of Nigeria (CBN) on Friday debited the nation’s deposit money banks a total sum of N118 billion for failing to meet 27.5 percent Cash Reserve Ratio (CRR) target.
This is the fourth of such action, bringing the total amount debited so far this year to N2.2 trillion.
According to Tunde Abidoye, an analyst at Lagos-based FBN Quest, the move brings “further downward pressure on banks liquidity ratios and earnings.”
“Based on the total sum that each bank has been debited this year, and our NIM assumptions for each bank, we estimate an aggregate opportunity cost of funds of N86bn for our universe of banks coverage,” Abidoye stated in a note to clients.
The central bank continues to debit banks to force them to loan more into the real sector and also reduce their forex purchasing power to better manage the nation’s weak foreign reserves and curb capital outflow. A series of recent reports have pointed to a possible foreign exchange devaluation to ease pressure on the nation’s reserves.
The report shows that the Stanbic IBTC and Guaranty Trust Bank were debited N15 billion each.
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