Connect with us

Forex

PZ, NEM, John Holt Lead N17bn Market Loss

Published

on

Nigerian Stock

PZ Cussons Nigeria Plc, NEM Insurance Company Nigeria Plc and John Holt Plc emerged as the top three losers at the close of trading on the floor of the Nigerian Stock Exchange on Monday, slashing market capitalisation by N17bn.

The NSE All-Share Index also dropped by 0.24 per cent, opening the week on a negative note following mixed performances across key sectors.

The NSE market capitalisation slid to N9.517tn from N9.534tn recorded on Friday last week.

A total of 195.024 million shares valued at N1.57bn exchanged hands in 3,221 deals.

Global markets traded higher following a rally in oil prices and as disappointing United States non-farm payroll data for August lowered expectations of a potential interest rate hike by the US Fed in September.

At the NSE, the industrial goods sector extended its downward trend amid continuous sell pressure in Dangote Cement Plc, which recorded a drop of 0.57 per cent. Consumer goods reversed previous session’s gains following losses in large capitalized firms like PZ (4.97 per cent loss) and Nigerian Breweries Plc (0.71 per cent loss).

Conversely, the financial services and the oil and gas sectors extended their positive run on the back of gains in Zenith bank Plc (1.01 per cent gain), United Bank for Africa (3.69 per cent gain), Diamond Bank Plc (4.46 per cent gain) and Oando Plc (2.10 per cent gain).

Market breadth turned negative with 13 advances and 21 declines.

To this end, analysts at Vetiva Capital Management Limited, said, “Notwithstanding some few periods of gains, the NSE ASI traded under water for most part of the trading session. Coupled with the mixed closing positions across key sectors, we expect market to remain volatile in the sessions ahead.”

Other losers at the close of trading were AIICO Insurance Plc, United Capital Plc, Unity Bank Plc, International Breweries Plc, Academy Press Plc, Africa Prudential Registrars Plc, FBN Holding Plc, Transnational Corporation of Nigeria Plc, Vitafoam Nigeria Plc, Champion Breweries Plc, among others.

The top three gainers were May and baker Nigeria Plc, Cutix Plc and Diamond Bank Plc.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Forex

Naira Remains Flat Against US Dollar, Euro

Published

on

500 and 1000 naira bills (Nigerian currency)

Naira Exchange Rate Remains Flat Against US Dollar and Euro on Black Market

The Naira remained unchanged on Tuesday despite the curfews and social unrest that grounded the nation’s economy.

Naira traded at N463 against the United States dollar on the black market on Tuesday morning, the same rate it exchanged on Thursday.

Against the European common currency, the Nigerian Naira exchanged at N540 to a single Euro.

However, the local currency dipped slightly against the British Pounds as it exchanged at N595 to a British Pound, representing a N3 decline from N592 it traded on Friday.

Social unrest amid weak economic fundamentals continued to weigh on Nigeria’s local currency, especially with Foreign Direct Investment expected to drop in the final quarter of the year through the first quarter of 2021.

This coupled with weak foreign reserves and a drop in global demand for crude oil is expected to compound Nigeria’s economic woes.

Lagos State governor, Babajide Sanwo-Olu, has said Nigeria’s commercial capital needs at least N1 trillion to fix the destruction and vandalisation that trailed the #EndSARS protest in the state. An amount equivalent to the state’s annual budget.

Experts, who spoke on the situation, said it would hurt the nation’s output and may plunge fourth-quarter GDP by as much as 6.9 percent. These rising uncertainties amid the second wave of COVID-19 and possible lockdown in key trading partners could further plunge Naira value against global counterparts in the fourth quarter of the year.

Continue Reading

Forex

Transparent Exchange Rate Can Boost Nigeria’s Forex Inflow

Published

on

Global debt

Transparent Exchange Rate Can Improve Nigeria’s Diaspora Forex Inflow

Experts that gathered at a virtual summit organised by Ecobank Nigeria with a theme, ‘Financial Services & Remittance Solutions for Nigerians in Diaspora: Leveraging Ecobank’s Pan-African offering’, have said Nigeria can boost foreign exchange inflow through proper engagement and a transparent exchange rate.

Mr. Patrick Akinwuntan, Managing Director of Ecobank Nigeria, in his opening speech, said growing evidence has shown that diaspora remittances were positively impacting economies of various nations in the world.

Akinwuntan put the total annual remittances to Nigeria at around $20 billion per year, saying it boosts the nation’s foreign exchange earnings.

Speaking on how these remittances can be sustained, he said constant engagement with Nigerians abroad is imperative and it is the reason Ecobank is leveraging its digital technology through Rapidtransfer App and Ecobank mobile App to ensure affordable and easy transfer of funds by Nigerians abroad to their home country.

“Our dedicated Rapidtransfer, mobile remittance app is a game-changer for the market. It enables Africans and indeed Nigerians wherever they are to easily and instantly send money to bank accounts, mobile wallets and cash collection in – and across – 33 African countries.

“Historically, the cost of sending cross-border remittances to Africa has been far too high at about 6%-7%. Similarly, the process to send funds has long been inefficient and burdensome, with customers typically needing to go physically to an agent sometimes late in the night or in poor weather with attendant discomfort and risks.

“The Rapidtransfer app remittance solution is a quick, easy and reliable digital solution that removes all of these issues. It is indeed a game-changer for Nigerians and all Africans with its sustainable and standout affordability,” he said.

Speaking on transaction charges, the Ecobank Managing Director said transfer fee range from zero to about 3 percent as compared to 6 – 7 percent charge elsewhere.

He added that the bank’s instant transfer and transparent exchange rate is a unique factor its competitors do not possess.

Continue Reading

Forex

Naira to Dollar Rate Today: Naira Exchanges at N463 to Dollar on Black Market

Published

on

interbank

Naira to Dollar Rate on Black Market Today Stood at N463

The Nigerian Naira to dollar rate slid slightly against the United States dollar on Tuesday on the black market as social unrest continues to weigh on the nation’s economic outlook.

The local currency lost N1 against the US dollar to N463 while against the British pound it remains pressured at N592.

This decline continues against the European Union’s common currency, the Euro. The Naira traded at N540 to a single Euro on the black market.

Naira to dollar rate plunged amid rising economic uncertainties and unclear policy path caused by both COVID-19 and government limited fiscal buffers to cushion the negative impacts of the virus on Africa’s largest economy.

This coupled with the ongoing social unrest by the Nigerian youths to force decorum across the Nigerian Police Force and call global attention to decades of systemic intimidation and harassment of innocent citizens.

The Nigerian Stock Exchange has been closing flat since Thursday and continued this week, suggesting that investors are concerns and wary of eventualities as they look to safeguard their investments.

Again, the projected third-quarter recession, low foreign revenue generation, weak consumer spending and the rising cost of living are some of the factors hurting the Nigerian Naira outlook.

Continue Reading

Trending