Wednesday, August 17, 2022: The Nigerian Investors and Exporters (I&E) FX Window opened the trading session with the naira appreciating by 0.7 percent from the previous closing price (N430.67/$1), to close at N427.58/$1. However, as intra-day trading progressed, the naira declined by 0.42 percent against the dollar and settled at N429.38/$1. Also, on a day-on-day basis, the naira appreciated by 0.3 percent from the closing price (N430.67/$1) recorded at the end of the previous trading session.
An exchange rate of N444/$1 was the highest rate recorded during the intra-day trading before it settled at N429.38/$1 at the end of the trading session, while it also traded as low as 417/$1 during intra-day trading. According to data from FMDQ, a total of $120.46 million was traded at the Investors and Exporters (I&E) Window for the reporting period, representing a 139 percent surge from the $50.40 million previously traded.
Since the beginning of the week, the naira has hovered around the N670 – N675 corridor. As of 17 August, the naira took a downturn from N672 to N675/$1 at the close of trading, having lost N3 to the dollar from the previous day’s closing price of N672. Historic rates also show that on a week-on-week basis, the naira declined by 0.4 percent against the dollar as it exchanged for N672 with the dollar the previous week. Trading activities at the B2B market show that the naira weakened as the exchange rate closed at about N686/$1, losing N6 from the previous exchange rate (N680/$1). This is based on the information obtained from forex marketers in Lagos.
According to data from the Central Bank of Nigeria (CBN), the gross foreign reserve as of 16 August decreased by $2.6 million to stand at $38.894 billion. This represents a 0.007 percent increase from $38.896 billion recorded on August 15, 2022.
Capital Market Update
As of August 17, 2022, the Nigerian equities market closed the trading session with the NGX All Share Index (ASI) decreasing by just 4 basis points (bps) to close at 49691.17. The trading volume was 128,786,284 units, decreasing by 37 percent from 204,162,649 units recorded at the end of the previous day’s trading. The total value that exchanged hands was N4,124,463,165.87, rising by 151 percent from the trading value (N1,640,276,459.41) at the close of the previous trading session.
The indices for most of the sectors under our review declined with only one sector having a different outcome. The Banking, oil and gas, Pension, and consumer goods sectors had a bearish performance as their indices closed in red. On the other hand, the insurance sector closed in green. The banking index decreased by 21 basis points (bps), oil and gas by 15 bps, pension by 6 bps, and consumer goods by 7 bps, while the insurance index increased by 86 bps.
PRESTIGE stock led the top gainers, having risen by 9.09 percent, while COURTVILLE led the top decliners after dropping by 9.80 percent. FBNH was the most traded stock by volume as 28,366,254 units of its shares were traded at N303,228,894.65. ZENITHBANK emerged as the most traded stock by value as N361,685,666.85 exchanged hands for 16,658,891 units of its shares.
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