Tuesday, August 16, 2022: The Nigerian Investors and Exporters (I&E) FX Window opened the trading session with the naira ticking up to N429.88/$1, having risen by 0.03 percent from the previous closing price (N430/$1). As intra-day trading progressed, the naira declined against the dollar to close at N430.67/$1, implying depreciation of 0.2 percent from the opening price. Also, on a day-on-day basis, the naira happens to have fallen by 0.2 percent from the closing price (N430/$1) recorded at the end of the previous trading session.
An exchange rate of N432/$1 was the highest rate recorded during the intra-day trading before it settled at N430.67/$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 $50.40 million was traded at the Investors and Exporters (I&E) Window for the reporting period, representing a 62 percent decrease from the $134.3 million previously traded.
In the parallel market, the naira had a downturn. As of the close of trading, the naira dropped to about N672/$, losing about N2 from the previous day’s closing price of N670. Historic rates show that on a week-on-week basis, the naira declined by 1.5 percent against the dollar as it exchanged for N660 with the dollar the previous week. Trading activities at the B2B market show that the naira strengthened as the exchange rate closed at about N676/$ gaining N4 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 15 August increased by $12.4 million to stand at $38.89 billion. This represents a 0.03 percent increase from $38.88 billion recorded on August 10, 2022.
Capital Market Update
As of August 16, 2022, the Nigerian equities market closed the trading session with the NGX All Share Index (ASI) increasing by 16 basis points (bps) to close at 49,709.46. The trading volume was N204,162,649 units, decreasing by 1819 percent from 10,640,886 units recorded at the end of the previous day’s trading. The total value that exchanged hands was N1,640,276,459.41, rising by 1895 percent from the trading value (N82,201,580.8) 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 insurance, oil and gas, consumer goods, and Pension sectors had a bearish performance as their indices closed in red. On the other hand, the banking sector index increased. The insurance index decreased by 97 basis points (bps), oil and gas by 12 bps, consumer goods by 11 bps, pension by 6 bps, while the banking index increased by 31 bps.
CUTIX led the top gainers, having risen by 7.50 percent, while UPDCREIT led the top decliners after dropping by 9.86 percent. FBNH was the most traded stock by volume as 36,832,568 units of its shares were traded at N396,177,313.75. FBNH also emerged as the most traded stock by value as N396,177,313.75 exchanged hands for its shares.