Friday, August 12, 2022: The Nigerian Investors and Exporters (I&E) FX Window opened the trading session on a bearish note with the naira exchanging for the dollar at N429.67/$1, representing a 0.13 percent increase from the previous closing price. As intra-day trading progressed, the naira gained further against the dollar to stand at N429.62/$1, implying an additional appreciation of 0.01 percent from the day’s opening price (N429.67). Also, on a day-on-day basis, the naira climbed up by 0.15 percent from the closing price (N430.25/$1) recorded at the end of the previous trading session.
An exchange rate of N431.94/$ was the highest rate recorded during the intra-day trading before it settled at N429.62/$1 at the end of the trading session, while it also traded as low as 410/$ during intra-day trading. According to data from FMDQ, a total of $46.31 million was traded at the Investors and Exporters (I&E) Window for the reporting period, representing a 20.6 percent increase from the $58.39 million previously traded.
In the parallel market, the dollar strengthened against the naira. As of the close of trading, the naira depreciated to about N685/$ at the parallel (black market), losing N10 to the dollar, having closed at N675 the previous day, as of the reporting period. Historic rates show that on a week-on-week basis, the naira declined by 5.4 percent against the dollar as it exchanged for N650 with the dollar the previous week. Trading activities at the B2B market show that the exchange rate closed at about N690/$ for the same period being reported. This is based on the information obtained from BDC operators in Lagos.
According to data from the Central Bank of Nigeria (CBN), the gross foreign reserve recorded a decline and stands at $38.881 billion as of August 11, 2022, declining by $0.925 million (0.1 percent) from $38.882 billion recorded on August 10, 2022.
Capital Market Update
As of August 12, 2022, the Nigerian equities market closed the trading session with the NGX All Share Index (ASI) declining by 70 basis points (bps) to close at 49664.07. The trading volume was 750,285,275 units, increasing by 11120 percent from 6,687,139 units recorded at the end of the previous day’s trading. The total value that exchanged hands was N5,307,221,217.8, representing a 4039 percent increase from the value ( N128,222,350.71) at the close of the previous day of trading.
There was a mixed performance for the sectors under our review. The indices for most sectors declined with others having a different outcome. The Consumer Goods and Insurance sectors recorded a bullish performance as their indices closed in green. The Oil and Gas, Pension, and Banking sectors recorded a bearish performance with their indices closing in green. The Consumer Good index having the highest increase rose by 282 basis points (bps) and Insurance by 175 bps. On the other hand, the Oil and gas index declined by 16 bps, Pension by 28 bps, and Banking by 91 bps.
BUAFOODS stock led the top gainers having risen by 10 percent, while BUACEMENT led the top decliners after dropping by 9.95 percent. CAPHOTEL was the most traded by volume and also by volume as 478203630.00 units of its shares were traded at N3,347,425,410.00.
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