By Adedapo Adesanya

The Naira further depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) for the third straight day on Wednesday, July 29, by N1.18 or 0.09 per cent to quote at N1,366.71/$1 compared with the previous day’s N1,365.53/$1.

In the same vein, the Nigerian currency weakened against the Euro in the official FX market at midweek by N2.44 to close at N1,555.32/€1, in contrast to Tuesday’s rate of N1,552.88/€1, but against the Pound Sterling, it appreciated by N2.38 to trade at N1,815.82/£1 versus the previous day’s N1,816.43/£1.

At the black market, the Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank forex counter at N1,370/$1.

Interbank FX turnover closed at $61.034 million, according to data obtained from the Central Bank of Nigeria (CBN), about a 41 per cent day-on-day decline from $102.954 million the previous day.

The data also revealed that the number of deals at the interbank FX window eased to 86 from 121 previously recorded.

With a slowdown in FX inflows from foreign portfolio investors, exporters and non-bank corporates, the CBN is anticipated to step up its market intervention to keep the local currency stable.

Meanwhile, the cryptocurrency market turned red during the session, as the US Federal Reserve left its benchmark fed funds rate range unchanged at 3.50 per cent -3.75 per cent, extending its pause for a sixth consecutive meeting as policymakers continue to grapple with stubborn inflation.

“Inflation remains elevated relative to the committee’s 2 per cent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy,” the policy statement read.

Investors will be watching closely for signs that the US central bank’s communication strategy is changing under the leadership of Mr Kevin Warsh, who had been openly critical of the Federal Reserve’s traditional use of forward guidance and the quarterly dot plot, which the bank uses to show officials’ interest rate projections.

Dogecoin (DOGE) dropped 1.3 per cent to sell at $0.0699, Ripple (XRP) crashed by 1.2 per cent to $1.07, Ethereum (ETH) declined by 0.8 per cent to $1,902.73, Bitcoin (BTC) lost 0.6 per cent to finish at $63,977.25, Solana (SOL) went down by 0.4 per cent to $73.57, and Cardano (ADA) depreciated by 1.2 per cent to $0.1625.

On the flip side, Binance Coin (BNB) went up by 0.4 per cent to $572.53, and TRON (TRX) soared by 0.3 per cent to $0.3263, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

By Dipo Olowookere

The bears made a comeback to Customs Street on Wednesday, crashing it by 0.41 per cent at the close of business due to selling pressure by investors.

Data from the Nigerian Exchange (NGX) Limited showed that the market breadth index was negative at midweek, after recording 43 price losers and 23 price gainers, implying weak investor sentiment.

Cornerstone Insurance lost 10.00 per cent to trade at N5.40, Legend Internet also depreciated by 10.00 per cent to N4.05, The Initiates declined by 9.91 per cent to N30.00, Guinea Insurance slipped by 9.78 per cent to 83 Kobo, and ABC Transport fell by 9.45 per cent to N5.75.

Conversely, Lasaco Assurance improved by 10.00 per cent to N2.42, NEM Insurance jumped by 9.97 per cent to N34.20, SUNU Assurances grew by 9.83 per cent to N3.91, Prestige Assurance went up by 7.14 per cent to N1.50, and CMFC gained 2.64 per cent to close at N3.89.

The activity level was mixed yesterday, as the trading volume increased by 12.11 per cent, the trading value declined by 7.14 per cent, and the number of deals slumped by 0.29 per cent.

The busiest equity for the session was FCMB, which traded 92.4 million units valued at N1.1 billion. First Holdco transacted 71.1 million units worth N8.8 billion, Access Holdings exchanged 43.3 million units for N1.2 billion, Sterling Holdings sold 35.8 million units valued at N285.2 million, and Zenith Bank closed with a turnover of 31.0 million units worth N3.9 billion.

When the market closed for the day, the All-Share Index (ASI) contracted by 1,004.38 points to 246,980.17 points from the preceding day’s 247,984.55 points, and the market capitalisation moderated by N648 billion to N159.345 trillion from Tuesday’s closing value of N159.993 trillion.

By Adedapo Adesanya

Oil prices climbed about 7 per cent on Wednesday as airstrikes resumed in the Middle East, raising fresh worries about supplies.

Brent futures soared by $6.65 or 7.91 per cent to $90.74 a barrel, while the US West Texas Intermediate (WTI) crude gained $5.20 or 6.56% to trade at $84.46 a barrel.

The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, blaming them for drone attacks on Saudi oil facilities.

This came after the American military said it had averted a surprise Iranian attack on US troops in the region while Iran ​said it had fired on ships in the Strait of Hormuz and at American bases in Jordan.

In Egypt, explosions hit ⁠a natural gas loading port on the Mediterranean Sea, and British maritime security company Ambrey said a US-owned floating storage tanker there had ​been hit by a drone. Saudi Arabia had already begun rerouting crude exports through Egypt’s SUMED pipeline to bypass the Bab el-Mandeb chokepoint.

US President Donald Trump reiterated that the US would “hit Iran hard” following an attack on a US base in Jordan.

Iran-backed Houthis are also weighing imposing fees on commercial shipping through the Bab el-Mandeb Strait, and US-Saudi forces launched fresh strikes against Houthi positions in Yemen.

Reuters reported that China has held direct talks ​with the group to enable ⁠its tankers to sail through the region without being attacked.

Iran rejected a proposal from Oman to evenly share control of the lanes in the Strait of Hormuz, as it demands to control most of the critical oil and Liquified Natural Gas (LNG) chokepoint.

Meanwhile, the US Treasury Department said it has issued another round of Iran-related sanctions, taking aim at the country’s efforts to “monetise the Strait of Hormuz” with designations of 10 entities and eight more tankers.

Crude oil inventories in the US saw a decrease of 7.2 million barrels during the week ending July 24, according to new data from the US Energy Information Administration (EIA) released on Wednesday.

Figures from the American Petroleum Institute (API) that were released a day earlier, reporting that crude oil inventories had fallen by 3.296 million barrels in the period.

The Organisation of the Petroleum Exporting Countries and allies (OPEC+) is likely to halt oil output increases for three months starting in October, after the producer group completes the scheduled return of barrels following voluntary cuts.