Economy

Weekly Report: Equity Market Loses N1.32trn amid CBN Rate Hike

Published

6 months ago

July 28, 2024

Admin

Equity investors on the Nigerian Exchange Ltd. (NGX) experienced a significant loss of N1.32 trillion in the just concluded week.

The downward performance was driven by selloffs in Tier-one banking stocks namely: Zenith Bank, Guaranty Trust Holding Company (GTCO), and also Dangote Cement, Dangote Sugar, African Prudential, among others.

Specifically, investors reacted negatively to the Central Bank of Nigeria’s (CBN’S) hike in the Monetary Policy Rate (MPR) announced within the week.

The News Agency of Nigeria (NAN) reports that CBNs Monetary Policy Committee (MPC) on Tuesday announced another increase in the country’s MPR by 50 basis point to 26.75 per cent, from 26.25 per cent.

Dr. Yemi Cardoso, CBN Governor, said the decision was in response to the continued inflationary pressures.

He noted that it was important to deal with inflation, as the apex bank was concerned over the impact of the inflation on ordinary Nigerians and businesses.

The NGX) All-Share Index and Market Capitalisation depreciated by 2.33 per cent each to close the week at 98,201.49 and N55.605 trillion respectively, against 100,539.40 and N56.929 trillion posted in the previous week.

Similarly, all other indices finished lower with the exception of NGX MERI Value which appreciated by 0.72 per cent while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Also, 20 equities appreciated in price during the week, lower than 37 equities in the previous week.

Forty-seven equities depreciated in price, higher than 34 in the previous week, while 84 equities remained unchanged, higher than 80 recorded in the previous week.

Secure Electronic Technology Plc led 46 declined equities on the losers’ table by 26.32 per cent to close at 42k per share.

Sovereign Trust Insurance Plc led 19 other advanced equities on the gainers table by 14.29 per cent to close at 56k per share.

Meanwhile, a total turnover of 3.557 billion shares worth N47.220 billion in 42,871 deals was traded during the week by investors.

This is in contrast to a total of 2.827 billion shares valued at N42.366 billion that exchanged hands last week in 44,277 deals.

The Financial Services Industry measured by volume led the activity chart with 2.011 billion shares valued at N25.783 billion traded in 24,350 deals.

This contributed 56.52 per cent and 54.60 per cent to the total equity turnover volume and value respectively.

The Services industry followed with 1.020 billion shares worth N3.216 billion in 1,846 deals.

The third place was the Agriculture industry, with a turnover of 168.028 million shares worth N647.859 million in 1,473 deals.

Trading in top three equities namely: Tourist Company of Nigeria Plc, FCMB Group Plc and Abbey Mortgage Bank Plc measured by volume accounted for 1.876 billion shares worth N8.511 billion in 935 deals.

This contributed 52.73 and 18.02 per cent to the total equity turnover volume and value respectively.

Looking ahead to the coming week, Analysts at Cowry Asset Management Ltd., predicted that bearish trend is expected to persist.

The analysts said this is because market players would continue to digest the outcome of the recently published economic data and the interest rate hike by the apex bank.

They noted that the continued rise in yield levels within the fixed income and money market spaces is likely to maintain the unattractiveness of equities, as investors opt for the appealing yields.

“Nonetheless, a mildly positive performance is anticipated on the back of continued earnings releases and attractive dividend declarations by corporations in the coming week.

“As the market structure and fundamentals evolve, investors are advised to position themselves in stocks with sound fundamentals to navigate the prevailing conditions effectively,” the analysts stated.

(NAN)

Economy

SEE Exchange Rates Black Market Dollar To Naira Exchange Rate In Lagos, FCT, 28 January 2025

Published

19 hours ago

January 28, 2025

Naijablitznews

Bureau De Change (BDC) sources in Gwarimpa and Gwagwalada in FCT buy a dollar for N1685 and sell it for N1700 on Tuesday, January 28, 2024.

Black Market Dollar To Naira Exchange Rate in Lagos and FCT today, 28 January 2025.

The official naira black market exchange rate in Lagos and FCT, Abuja today including the Black Market rates, Bureau De Change (BDC), and CBN rates.

According to Bureau De Change (BDC) sources in the Ogba and Ikeja axis of Lagos state, the exchange rate for a dollar to naira at the Parallel Market (Black Market) is N1700 on Tuesday, January 28, 2024, players bought a dollar for N1685 and sold it for N1700.

Bureau De Change (BDC) sources in Gwarimpa and Gwagwalada in FCT buy a dollar for N1685 and sell it for N1700 on Tuesday, January 28, 2024.

Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.

Dollar to Naira Black Market Rate Lagos
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate N1685
Selling Rate N1700
Dollar to Naira Black Market Rate FCT, Abuja
Dollar to Naira (USD to NGN) CBN Rate Today
Buying Rate N1685
Selling Rate N1700
Please note that the rates you buy or sell forex may differ from what is captured in this article because prices vary from state to state across Nigeria.

Economy

Naira rebounces against US Dollar, gains N10

Published

22 hours ago

January 28, 2025

Naijablitznews

The Nigerian Naira appreciated against the dollar in the parallel exchange market on Monday, recording a gain of ₦10.

A Bureau de Change operator in Wuse Zone 4, Abuja, Abubakar Alhasan, disclosed to DAILY POST that the Naira strengthened to ₦1,650 per dollar on Monday, compared to ₦1,660 recorded last Friday.

This improvement in the parallel market indicates a positive development for the local currency, which has faced persistent challenges in recent months.

However, in the official foreign exchange market, the Naira experienced a slight drop. According to data from the Financial Markets Dealers Quotation (FMDQ), the currency traded at ₦1,533.63 per dollar on Monday, compared to ₦1,531.20 last Friday, reflecting a marginal depreciation of ₦2.43.

The Naira’s performance continues to show mixed sentiments across different market segments. While the parallel market has seen a modest gain, the official window reflects a slight loss. This volatility underscores ongoing challenges despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency.

Recent Trends
Over recent months, the Naira has fluctuated in value due to a combination of factors, including fluctuating forex demand, limited dollar supply, and monetary policy adjustments. The CBN’s interventions, including forex reforms and measures to improve liquidity, have aimed to address these issues, though the currency continues to experience periodic pressure.

Economy

We’ll fix economy, security , fight corruption — VP Shettima

Published

1 day ago

January 28, 2025

Kayode Sanni-Arewa

Vice President Kashim Shettima has assured Nigerians of the commitment of the ruling All Progressives Congress, APC, administration to fight corruption, fix the economy, improve national cohesion and strengthen the independence of the judiciary.

Shettima gave this assurance at the national conference on strengthening democracy in Nigeria on Monday in Abuja.

The conference themed, ‘Strengthening Nigeria’s democracy: Pathways to good governance and political integrity’,was organised by the African Centre for Leadership, Strategy and Development.

Shettima, who was represented by his Special Adviser on political issues, Hakeem Baba-Ahmed, admitted that while democracy is not a perfect system, compared to others, it is the best form of government.

“We will listen and adjust where necessary, and we will account for our stewardship in all matters our challenging democratic systems demand.

“I am convinced that Nigeria shall rise again, answer to its full potential and lead the way to a future that has learnt lessons from a difficult past into a world in which our country will be a key player, and our young will be active champions of a democratic system because it speaks to them.

“It has been said many times that democracy is an imperfect system, yet superior to all others.

“We will continue to seek to provide evidence of the values of the democratic systems by, among others, fixing major weaknesses of our economy, securing our communities, fighting corruption, supporting free and fair elections, strengthening the independence of the judiciary and improving national cohesion,” he said.

Shettima urged Nigerians to support the current administration in this challenging but ultimately rewarding journey, dtressing that the Bola Tinubu administration has a major interest in the quality of the democratic system.