Economy
$4.31b FX Was Sold To Dealers In 2016 Q2—CBN
By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) has released the economic report for the second quarter of 2016.
In the report seen by Business Post, growth in the key monetary aggregates accelerated in the second quarter of 2016.
The apex bank said during the period under review, provisional data showed that foreign exchange inflow and outflow through it amounted to US$5.89 billion and US$6.09 billion, respectively, resulting in a net outflow of US$0.20 billion.
It further said foreign exchange sales by it to the authorized dealers amounted to US$4.31 billion in the second quarter of 2016. It explained that the average exchange rate of the naira vis-à-vis the US dollar at the inter-bank was N209.13/US$.
CBN also said over the level at the end of the preceding quarter, broad money supply, (M2), grew by 5.9 percent.
It explained in the report that the development reflected the increase in net foreign assets, domestic credit (net) and other assets (net) of the banking system, respectively.
Similarly, narrow money (M1), grew by 0.9 per cent over the level at the end of the preceding quarter.
Developments in banks’ deposit and lending rates were mixed during the second quarter of 2016. The spread between the weighted average term deposit and maximum lending rates widened to 21.43 percentage points at the end of the second quarter of 2016.
Similarly, the margin between the average savings deposit and the maximum lending rates widened to 24.10 percentage points.
At the inter-bank funds segment, the weighted average inter-bank call rate rose by 12.55 percentage points to 15.56 per cent in the second quarter of 2016, reflecting the liquidity condition in the banking system.
The total value of money market assets outstanding at the end of the second quarter of 2016, stood at N10,460.66 billion, showing an increase of 6.7 per cent, compared with the level at the end of the first quarter of 2016. The development reflected the 8.09 and 2.73 per cent increase in FGN bonds and treasury bills, respectively.
Developments on the Nigerian Stock Exchange (NSE) were mixed in the review quarter.
At N1,159.05 billion, total federally-collected revenue was 51.3 and 8.6 per cent lower than the quarterly budget estimate and the preceding quarter’s receipts, respectively. At N537.19 billion or 46.3 per cent of the total, gross oil receipt was lower than both the provisional quarterly budget and the receipts in the preceding quarter.
The development was attributed to the continued fall in receipts from crude oil/gas exports arising from persistent low price of crude oil and incidences of shut-ins and shut-downs at some NNPC terminals, owing to pipeline vandalism. Non-oil receipts, at N621.86 billion or 53.7 per cent of the total, was above the level in the preceding quarter by 3.2 per cent, but was significantly lower than the proportionate quarterly budget.
Federal Government retained revenue was N677.88 billion, while total expenditure was N1,768.85 billion, resulting in an estimated deficit of N1,090.96 billion in the second quarter of 2016, compared with the proportionate quarterly budget deficit of N555.49 billion.
The CBN said in the report that agricultural sector activities increased due to well distributed rainfall in most parts of the country. Major activity in the South was harvesting of maize and yam, while planting and off-season harvesting dominated in the North. In the livestock sub-sector, farmers engaged in the breeding of poultry and migration of cattle from North to South in search of green pastures. The end-period inflation rate on year-on-year and 12-month moving average basis for the second quarter of 2016, was 16.5 per cent and 11.4 per cent, respectively.
World crude oil demand and supply were estimated at 93.25 mbd and 94.34 mbd, respectively, in the second quarter of 2016. Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.54 million barrels per day (mbd) or 141.68 million barrels (mb) for the second quarter of 2016. Crude oil export was estimated at 1.09 mbd or 100.28 million barrels, while deliveries to the refineries for domestic consumption remained at 0.45 mbd or 41.40 million barrels during the review quarter.
The average price of Nigeria’s reference crude, the Bonny Light (370 API), was US$46.44 per barrel in the review quarter.
Global growth remained modest and uneven. Risks to the global outlook remained tilted to the downside, due to ongoing adjustments in the global economy, general slowdown in emerging market economies, China’s rebalancing, lower commodity prices and gradual exit by the US from extraordinarily accommodative monetary policy.
Other major international economic developments and meetings of importance to the domestic economy during the review period included: The 2016 Spring Meetings of the Board of Governors of the World Bank Group (WBG), the International Monetary Fund (IMF) and the Inter-Governmental Group of Twenty-Four (G-24) on International Monetary Affairs and Developments held from April 11 – 18, 2016 in Washington D. C., USA. Also, the 2016 continental seminar of the Association of African Central Banks (AACB) was held from May 9 -11 2016 in Cairo, Egypt, on the theme “Financial stability: New Challenges for Central Banks.
Finally, the 51st Annual Meetings of the African Development Bank (AfDB) and the 42nd Meetings of the Board of Governors of the African Development Fund (ADF) were held from May 23 – 27 2016 in Lusaka, Zambia.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.
Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.
Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.
As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.
The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.
The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.
The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.
A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.
The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.
On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.
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