By Dipo Olowookere
It was another 0.13 per cent growth on the floor of the Nigerian Exchange (NGX) Limited on Thursday as investors intensified their demand for local equities, though the market breadth remained negative.
Business Post reports that the exchange ended the trading session with 30 price losers and 14 price gainers, but bargain hunting in Okomu Oil, FBN Holdings and others ensured that Nigerian stocks rallied.
According to data harvested from the bourse, the consumer goods counter dropped 1.57 per cent, the banking index fell by 1.30 per cent, the industrial goods space decreased by 0.03 per cent, but the insurance sector appreciated by 0.35 per cent, while the energy sector closed flat.
At the close of trades, the All-Share Index (ASI) appreciated by 61.00 points to 46,965.48 points from 46,904.48 points, while the market capitalisation improved by N32 billion to N25.311 trillion from N25.279 trillion.
During the session, a total of 256.0 million equities worth N3.7 billion exchanged hands in 4,227 deals compared with the 201.3 million equities worth N2.6 billion exchanged in 4,017 deals a day earlier, indicating an increase in the trading volume by 27.20 per cent, a rise in the trading value by 39.66 per cent and a hike in the number of deals by 5.23 per cent.
Fidelity Bank ended the session with the highest trades in terms of volume as it sold 77.4 million stocks valued at N242.3 million, followed by UAC Nigeria with 17.0 million shares valued at N198.7 million.
Chams transacted 15.5 million stocks worth N3.2 million, Zenith Bank exchanged 15.3 million equities worth N343.4 million, while Access Holdings traded 15.2 million shares valued at N149.9 million.
As for the price movement index, Meyer recorded the highest price increase yesterday as its value went up by 10.00 per cent to settle at 66 kobo.
Axa Mansard grew by 9.72 per cent to N2.37, FBN Holdings appreciated by 6.90 per cent to N12.40, Courteville rose by 5.66 per cent to 56 kobo, Okomu Oil increased by 4.32 per cent to N149.70.
On the flip side, Northern Nigerian Flour Mills suffered the heaviest loss as it went down by 10.00 per cent during the session to trade at N9.00.
Neimeth depreciated by 9.55 per cent to N1.42, Berger Paints declined by 9.33 per cent to N6.80, RT Briscoe fell by 9.23 per cent to 59 kobo, while Nigerian Breweries lost 9.10 per cent to sell for N40.45.
Naira depreciates at I&E window despite significant improvement in FX supply
Wednesday, 18th May 2022: The exchange rate between the naira and the US dollar closed at N419.25/$1 at the official Investors and Exporters (I&E) window, representing a 0.18% depreciation.
Naira retracted its initial gain recorded in the previous trading session as the exchange rate between the naira and the US dollar depreciated by 0.18% to close at N419.25/$1 compared to N418.5 recorded on Tuesday. Meanwhile, FX supply surged by 95.55% to $201.34 million.
Similarly, the exchange rate against the US dollar depreciated by 0.33% on Thursday morning at the peer-to-peer market, trading at a minimum of N605/$1 compared to N603/$1 recorded as of the same time the previous day.
Meanwhile, the exchange rate at the parallel market remained stable at N590 to a dollar. This is according to information obtained from BDCs operating in Nigeria.
Nigeria’s external reserve fell further below the $39 billion threshold on Tuesday as the level recorded a 0.09% decline to stand at $38.88 billion from $38.92 billion recorded as of the previous day. The last time Nigeria’s external reserve level was below $39 billion was seven months ago, 8th October 2021 specifically.
The decline in the external reserve level can be attributed to the continuous intervention by the Central Bank in the FX market in order to ensure the stability of the local currency.
Trading at the official NAFEX window
Naira depreciated against the US dollar on Wednesday by 0.18% to close at N419.25/$2 compared to N418.5/$1 recorded on Tuesday.
- The opening indicative rate closed at N418/$1 on Wednesday 18th May 2022, 57 kobo depreciation compared to N417.42/$1 recorded on Tuesday, 17th May 2022.
- Furthermore, an exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N419.25/$1, while it sold for as low as N410/$1 during intra-day trading,
- A total of $201.34 million in FX value exchanged hands at the official Investors and Exporters window on Wednesday.
- According to the data from the FMDQ, forex turnover improved by 91.55% from $105.11 million recorded on Tuesday to $201.34million on Wednesday, 18th May 2022.
Crypto market update
The crypto market closed trading activities on Wednesday on a bearish note as the flagship asset and most capitalized cryptocurrency lost 380 basis points to close at $29,269, triggering a 4.51% downturn in the overall crypto market capitalization.
Ethereum also recorded a 5.88% price decline on Wednesday to trade at $1,966, while Solana dipped 10.03% to trade at $51.2725. LUNAUSD and Uniswap both lost 9% and 8.23% of their worth on Wednesday to close at $.000169 and $5.02 respectively.
Meanwhile, the new SEC crypto and digital asset regulation has drawn several reactions, both positive and negative remarks from crypto enthusiasts across the country and outside the shores of the country. Some of these players in the digital asset space have commended the SEC for a first step while some of the analysts believe the regulation has some sore points in the draft.
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Despite hyperinflation, Nigerian companies record higher revenues and margins in Q1 2022
This monetary direction helps in spurring growth in the economy, as there would be more activities across various sectors, although it is believed that an expansionary monetary stance could be counter-productive as it could quicken inflation rate.
It is however worth noting that Cadbury Plc recorded a 495% growth in its operating profit, CAP Plc and Seplat Energy grew their operating profit by 218% and 151% respectively.