Economy
CBN Keeps Key Lending Rate Intact at 11.5%
By Modupe Gbadeyanka
The monetary policy rate (MPR) in Nigeria has been left unchanged for another period at 11.5 per cent, the Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, has declared.
Addressing newsmen on Tuesday in Abuja after the two-day Monetary Policy Committee (MPC) meeting of the apex bank, Mr Emefiele disclosed that the decision to retain the anchor interest rate was taken unanimously by members of the committee.
He explained that it was because the team felt tightening or loosening the key lending rate and the others could tamper with the progress made so far with the interventions of the central bank.
The CBN chief noted that at the meeting, which commenced on Monday, the members took a critical look at the effects of the various interventions as well as the gradual easing in inflation to 15.99 per cent in October 2021 and the 4.03 per cent growth in the gross domestic product (GDP) in the third quarter of the year and decided it was best to leave the rates.
Consequently, the MPC voted to maintain the MPR at 11.5 per cent, the Asymmetric Window retained at +100 and -700 basis points around the MPR, the Liquidity Ratio (LR) was left at 30 per cent and the Cash Reserve Ratio (CRR) was kept at 27.5 per cent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange made a 0.02 per cent marginal slide on Tuesday, May 6, leaving the NASD Unlisted Security Index (NSI) down by 0.66 per cent to 3,289.00 points from the previous session’s 3,289.66 points.
In the same vein, the market capitalisation fell by N390 million to close at N1.925 trillion compared with the preceding trading day’s N1.926 trillion.
Afriland Properties Plc dropped N1.10 to close at N14.90 per share compared with the previous day’s N16.00 per share, FrieslandCampina Wamco Nigeria Plc lost N1.08 to settle at N38.92 per unit versus Monday’s closing price of N40.00 per unit, and UBN Property Plc went down by 22 Kobo to finish at N1.98 per share, in contrast to the previous day’s N2.20 per share.
On the flip side, the share price of Mixta Real Estate Plc increased by 45 Kobo to close at N5.00 per unit versus N4.55 per unit, and First Trust Microfinance Bank Plc expanded by 1 Kobo to trade at 63 Kobo per share compared with Monday’s closing price of 62 Kobo per share.
Yesterday, there was a 12,683.9 per cent rise in the volume of securities traded to 2.5 million units from the 19,920 units recorded in the previous trading day, there was also a 3,874.1 per cent increase in the value of securities transacted to N34.7 million from N872,687, and there was 320 per cent leap in the number of deals to 42 deals from 10 deals.
When the market closed for the day, Impresit Bakolori Plc remained the most traded stock by volume (year-to-date) with 533.9 million units worth N520.9 million, followed by Geo-Fluids Plc with 265.7 million units valued at N469.3 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.
Also, Okitipupa Plc was the most traded stock by value (year-to-date) with 153.6 million sold for N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 18.8 million units valued at N721.1 million, and Impresit Bakolori Plc with 533.9 million units worth N520.9 million.
By Adedapo Adesanya
The Naira was relatively stable against the US Dollar, though it marginally appreciated by 0.01 per cent or 16 Kobo at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, trading at N1,606.75/$1 compared with the preceding day’s N1,606.91/$1.
In the same vein, the domestic currency remained unchanged against the Pound Sterling and the Euro during the trading session at N2,137.73/£1 and N1,821.75/€1, respectively.
However, the Nigerian Naira weakened against the Dollar in the black market yesterday by N10 to quote at N1,615/$1, in contrast to the preceding day’s N1,605/$1.
The Naira has experienced weakening over recent weeks due to reduced intervention in the FX market by the Central Bank of Nigeria (CBN) while factors like weakening oil prices threatens foreign earnings.
This adds to fears triggered by the uncertainty surrounding President Donald Trump’s trade war with China and other trading partners.
In the cryptocurrency market, most of the tokens gained weight as the US makes possible approach to speak with Chinese representatives.
US Treasury Secretary Scott Bessent noted that the current tariffs and trade barriers are unsustainable, but said the US doesn’t want to decouple.
China, on the other hand, said after it has carefully evaluated the remarks, it has decided to engage the US.
A possible thawing in the trade stance offered support for the market with Litecoin (LTC) rising by 11.5 per cent to sell at $91.77.
Bitcoin (BTC) gained 2.4 per cent to close at $96,700.19, Cardano (ADA) appreciated by 1.9 per cent to trade at $0.6791, Dogecoin (DOGE) improved its value by 1.8 per cent to settle at $0.1727, Ethereum (ETH) expanded by 1.6 per cent to $1,833.04, Ripple (XRP) increased by 1.2 per cent to $2.13, Binance Coin (BNB) went up by 0.9 per cent to finish at $605.04, and Solana (SOL) jumped by 0.5 per cent to end at $146.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Adedapo Adesanya
Oil prices climbed about 3 per cent on Tuesday, which is a sign of higher demand in Europe and China, lower production in the US, and tensions in the Middle East, with Brent futures gaining $1.92 or 3.2 per cent to settle at $62.15 a barrel and the US West Texas Intermediate (WTI) futures rising by $1.96 or 3.4 per cent to close at $59.09 per barrel.
Development in Europe boosted positive signals as the European Union (EU) said the 27-nation bloc is under no pressure to accept an unfair tariff deal with the US.
The European Commission, meanwhile, proposed adding more individuals and over 100 vessels linked to Russia’s shadow fleet to its 17th package of sanctions against Moscow in response to Russia’s 2022 invasion of Ukraine.
Demand signals may also be tied to expectations that European companies will record growth when first quarter numbers are released.
The rise in geopolitical risk premium in the Middle East also provided support after Israel struck Iran-backed Houthi targets in Yemen as a retaliation for an assault on an airport.
US President Donald Trump, however, said the US will stop bombing the Houthis in Yemen, saying that the group had agreed to stop interrupting important shipping lanes in the Middle East.
Prices also drew support after consumers in China increased spending during the May Day celebration and as market participants returned after the five-day holiday.
The US Dollar fell to a one-week low against a basket of currencies as investors grew impatient about trade deals.
A weaker US currency makes dollar-priced oil less expensive for buyers using other currencies.
In addition, lower oil prices in recent weeks have prompted some US energy firms to announce that they would cut some rigs, which analysts said should over time increase prices by reducing output.
President Trump also said on Monday he would announce pharma tariffs over the next two weeks, his latest action on levies that have impacted global financial markets over the past months.
US Treasury Secretary Scott Bessent said the Trump administration could announce trade agreements with some of the US largest trade partners as early as this week, but gave no details on which countries were involved.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN