By Adedapo Adesanya
The Naira depreciated against the United States Dollar at the black market on Thursday by N1 to trade at N713/$1 in contrast to the previous day’s N712/$1.
However, in the Peer-to-Peer (P2P) window of the foreign exchange (forex) market, the local currency maintained stability against the American currency at N725/$1, data obtained by Business Post showed.
Also, the story was not different in the Investors and Exporters (I&E) segment of the market, where the exchange rate of the nation’s legal tender paired with the greenback remained unchanged at N436.50/$1, according to data from FMDQ Securities Exchange.
The platform further revealed that the domestic currency withstood the FX demand pressure yesterday due to the availability of forex in the system. The value of transactions stood at $101.74 million, $32.23 million or 24.1 per cent lower than the $133.97 million achieved a day earlier.
In the interbank segment, the Nigerian Naira appreciated against the Euro on Thursday by N1.09 to settle at N425.66/€1 versus N488.59/€1 and against the Pound Sterling, it gained N60 Kobo to trade at N487.99/£1 compared with Wednesday’s N488.59/£1.
Meanwhile, amid the hike in interest rates across the key economies of the world, investors found solace in cryptocurrencies, helping the market heave a sigh of relief.
Ripple (XRP) gained 30.7 per cent to trade at $0.5523, Dogecoin (DOGE) made a 7.8 per cent rise to quote at $0.0621, Ethereum (ETH) went up by 7.1 per cent to $1,348.67, Cardano (ADA) recorded a 6.9 per cent increase to finish at $0.4736, Solana (SOL) appreciated by 5.9 per cent to settle at $31.72, Binance Coin (BNB) recorded a 5.4 per cent growth to trade at $277.16, Litecoin (LTC) recorded a 5.1 per cent gain to close at $54.56, and Bitcoin (BTC) jumped by 3.9 per cent to sell at $19,409.81.
However, the value of Binance USD (BUSD) and the US Dollar Tether (USDT) remained unchanged at the close of business yesterday at $1.00 each.
Market Down 1.47% as Investors Lose Confidence in Nigerian Stocks
Unlisted Securities Market Loses N15.62bn
Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.
Nigerian Naira Trades N724/$1 at P2P, N705/$1 at Black Market
Naira Sells N712/$1 at P2P, N429.44/$1 at Spot Market
Local Currency Trades N687/$1 at P2P, aN430/$1 at I&E
Naira Falls to N699/$1 at Peer-2-Peer, N664/$1 at Black Market
Local Currency Gains 0.28% on Dollar at Spot Market
Local Currency Gains 0.49% at P2P FX Market Segment
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By Ijezie Ebuka
The day started in Asia with the Indonesian and Philippines Central Banks raising interest rates by 50 basis points. The Norway Central Bank followed by also raising its rate by 50 basis points from 1.75% to 2.25% and said the rate would also be most likely increased again in November as the inflation rate is above its 2% target.
The Bank of England then increased the interest rate by 50 basis points as the UK’s inflation rate in August was 9.9%, way ahead of the bank’s 2% target. The hike was the seventh consecutive increase and the highest since 2008.
The last country in Europe with a negative policy rate, Switzerland also increased the interest rate by 75 basis points, just as the Federal Reserve did for the third consecutive time on Wednesday, September 22.
The Brazilian Central Bank, on the other hand, kept its benchmark unchanged at 13.75% after 12 straight hikes. Another Central bank that kept the rate unchanged is the Bank of Japan. It stuck with a low-interest rate despite a consumer inflation rate of 2.8% in August and said it would keep it that way in the near future to encourage economic recovery. It also confirmed that it would intervene in the foreign exchange market to defend against the fall of the Yen.
The shock of the day was Turkey cutting its interest rate by 100 basis points from 13 to 12% despite an 80% inflation rate in August.
Economists at CitiGroup issued a report on Wednesday that, “The rhetoric and action of major central banks are demonstrating greater resolve to fighting inflation, increasingly willing to sacrifice economic growth to achieve this.”
Persistent inflation around the world means central banks around the world may continue to increase interest rates in the near future.
Next week, the Central Bank of Nigeria (CBN) will meet to decide which way to go. At its last meeting, the benchmark rate was raised from 13% to 14%.
It is always believed that when interest rates are high, the cost of borrowing goes up, forcing consumers to reduce their spending, bringing about a decline in the demand for goods, and resulting in a fall in prices. When the prices of goods go down, inflation eases.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited further declined by 0.47 per cent on Thursday as investors have started to lose confidence in Nigerian stocks due to news flying around about corporate governance issues in the parent company of the bourse.
Business Post reports that traders offloaded some blue-chip stocks in their portfolios, leading to weak investor sentiment as 14 equities closed in the losers’ chart while 10 stocks were on the gainers’ table.
Cornerstone Insurance lost 10.00 per cent to trade at 54 Kobo, Multiverse depreciated by 9.90 per cent to N2.82, Cadbury Nigeria fell by 9.62 per cent to N11.75, BUA Cement decreased by 6.18 per cent to N50.10, and Guinness Nigeria went down by 5.57 per cent to N83.00.
On the other hand, Trans-nationwide Express finished on top of the advancers’ table after its value went up by 8.70 per cent to 75 Kobo, NEM Insurance appreciated by 2.67 per cent to N5.39, Cutix grew by 2.50 per cent to N2.05, Academy Press inflated by 2.41 per cent to N1.70, with International Breweries rising by 2.02 per cent to N5.05.
During the session, investors traded 126.8 million shares worth N1.8 billion in 3,117 deals in contrast to the 51.9 million shares worth N590.0 million traded in 2,981 deals on Wednesday, representing an increase in the trading volume, value and number of deals by 144.51 per cent, 202.00 per cent and 4.56 per cent, respectively.
NGX Group was the most traded stock yesterday with the sale of 30.8 million units for N553.5 million, followed by Zenith Bank with the sale of 24.4 million units valued at N488.0 million. Fidelity Bank traded 13.8 million shares worth N50.7 million, FBN Holdings exchanged 11.0 million valued at N110.8 million, while Access Holdings sold 8.2 million equities worth N68.2 million.
The banking sector maintained its impressive performance yesterday, rising by 0.42 per cent. Still, it could not salvage the situation as the industrial goods, consumer goods, insurance and energy counters depreciated by 2.30 per cent, 0.36 per cent, 0.32 per cent and 0.20 per cent, respectively.
At the close of trades, the All-Share Index (ASI) decreased by 231.57 points to 49,190.34 points from 49,421.91 points as the market capitalisation went down by N125 billion to N26.533 trillion from N26.658 trillion.
By Adedapo Adesanya
For the third straight trading day, the NASD Over-the-Counter (OTC) Securities Exchange slumped on Thursday by 1.61 per cent on the back of a decline in the share price of FrieslandCampina WAMCO Nigeria Plc.
The milk-producing firm lost N8.00 during the session to close at N73.00 per share compared with the N81.00 per cent it closed a day earlier.
The selling pressure caused the value of the unlisted securities market to go down by N15.62 billion yesterday to N952.57 billion from N968.19 billion as the NASD Unlisted Securities Index (NSI) went down by 11.87 points to 723.61 points from 735.48 points.
Business Post reports that the volume of securities traded at the bourse yesterday took a dive into the sea by 60.9 per cent as investors transacted 63,219 units of securities in contrast to the 161,681 units of securities traded in the midweek session.
Also, the number of deals carried out on Thursday appreciated by 50 per cent to seven deals in contrast to the 14 deals carried out the previous day.
However, the value of shares traded yesterday surged by 178.5 per cent to N8.4 million from the N3.0 million recorded a day earlier.
When the platform closed for the day, AG Mortgage Bank Plc remained the most traded stock by volume on a year-to-date basis with a turnover of 2.3 billion units valued at N1.2 billion, followed by Central Securities Clearing System (CSCS) Plc with the sale of 687.6 million units worth N14.3 billion, and Mixta Real Estate Plc with the sale of 178.1 million units valued at N313.4 million.
The most traded stock by value on a year-to-date basis was still CSCS Plc with a turnover of 687.6 million units valued at N14.3 billion, VFD Group Plc was in second place with 27.7 million units valued at N7.4 billion, and the third place was occupied by FrieslandCampina with the sale of 14.3 million units worth N1.7 billion.
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