Thursday, August 11, 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 N427/$1, representing a 0.4 percent decline from the previous closing price. As intra-day trading progressed, the naira dropped further against the dollar to stand at N430.25/$, implying a downturn of 0.6 percent from the day’s opening price (N427). Also, on a day-on-day basis, the naira slipped down by 0.2 percent from the opening price (N429.58/$1) recorded at the end of the previous trading session.
An exchange rate of N444/$ was the highest rate recorded during the intra-day trading before it settled at N430.25/$ at the end of the trading session, while it also traded as low as 415/$ during intra-day trading. According to data from FMDQ, a total of $58.39 million was traded at the Investors and Exporters (I&E) Window for the reporting period, representing a 95 percent decrease from the $113.64 million previously traded.
In the parallel market, the dollar strengthened against the naira. As of the close of trading yesterday, the naira depreciated to about N675/$ at the parallel (black market), losing N3 to the dollar, having closed at N672 the previous day. Historic rates from Rate Captain show that on a week-on-week basis, the naira declined by 6.3 percent against the dollar as it exchanged for N635 with the dollar the previous week. Trading activities at the B2B market show that the exchange rate closed at about N680/$ 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 $38.88 billion as of August 10, 2022, declining by $37.5 million (0.1 percent) from $38.92 billion recorded on August 9, 2022.
Capital Market Update
As of August 11, 2022, the Nigerian equities market closed the trading session with the NGX All Share Index (ASI) declining by 12 basis points (bps) to close at 50014.60. The trading volume was 6,687,139 units, decreasing by 95 percent from 133,591,047 units recorded at the end of the previous day’s trading. The total value that exchanged hands was N128,222,350.71, representing a 92 percent decrease from the value ( N1,600,148,807.72) 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. Only the index of the Insurance sector recorded a bullish performance, the Oil and Gas sector stabilized, while Consumer Goods, Pension, and Banking indices closed in red. The Insurance index rose by 61 basis points (bps). Oil and gas stabilized, as its index neither increased nor decreased. The Consumer Goods index declined by only 3 bps, Pension by 22 bps, and Banking, having the highest decline, dropped by 62 bps.
IKEJAHOTEL stocks led the top gainers having risen by 9.48 percent, while BUACEMENT led the top decliners after dropping by 9.95 percent. HONYFLOUR was the most traded by volume as 1113399.00 units of its shares were traded at N3193527.20. On the other hand, GTCO emerged as the most traded stock by value as 200931.00 units of its shares were traded at a value of N10643123.15.