By Adedapo Adesanya

The Naira moved in different directions at the foreign exchange (FX) market on Tuesday as the Central Bank of Nigeria (CBN) has held back its direct interventions aimed to defend the local currency.

Yesterday, the Nigerian Naira appreciated against the United States Dollar in the black market by N5 to quote at N1,545/$1, in contrast to Monday’s exchange rate of N1,550/$1.

But, at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the domestic currency depreciated against the greenback by N1.16 or 0.08 per cent to close at N1,534.93/$1 compared with the preceding day’s N1,533.77/$1.

However, the Naira appreciated against the Pound Sterling in the official market by N3.20 to close at N2,073.69/£1 versus the preceding session’s N2,076.89/£1 and declined by 68 Kobo to finish at N1,792.04/€1 versus N1,791.36/€1.

According to market analysts, the decision of the CBN to halt its forex sales to authorised dealers is likely because the Nigerian currency is trading within the expected range.

Updated data showed that the gross balance in the nation’s external reserves climbed to $40.962 billion on Monday.

As for the cryptocurrency market, profit-taking plunged the landscape into chaos as investors are turning cautious that the US Federal Reserve Chairman Jerome Powell’s speech set for Friday at Jackson Hold may come with a hawkish surprise.

Investors, who previously expected a September interest rate cut by the Federal Reserve, are now weighing the odds that Mr Powell might argue for holding rates steady during his Friday keynote address at the central bank’s Economic Symposium in Kansas City.

Despite recent signs of a weakening job market and slowing economy, last week’s PPI report reignited concerns of inflation reaccelerating in the US.

Cardano (ADA) slumped by 7.6 per cent to $0.8522, Ripple (XRP) declined by 3.8 per cent to $2.89, Litecoin (LTC) fell by 2.1 per cent to $114.23, Dogecoin (DOGE) slid by 1.8 per cent to $0.2132, Binance Coin (BNB) dropped 1.2 per cent to sell for $834.25, Ethereum (ETH) went down by 1.2 per cent to $4,183.29, and Bitcoin (BTC) depreciated by 1.1 per cent to $113,703.16.

However, Solana (SOL) appreciated by 0.6 per cent to $181.05, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

By Dipo Olowookere

The growth recorded by the Nigerian Exchange (NGX) Limited on Monday was reversed on Tuesday by 1.46 per cent due to renewed selling pressure.

During the session, profit-taking was dominant, with the industrial goods index down by 4.37 per cent. Further, the insurance space retreated by 3.86 per cent, the banking sector went down by 2.06 per cent, and the energy counter shrank by 0.68 per cent, while the consumer goods industry appreciated by 0.57 per cent.

As a result, the All-Share Index (ASI) contracted by 2,109.00 points to 142,613.47 points from 144,722.47 points and the market capitalisation moderated by N1.334 trillion to N90.227 trillion from the N91.561 trillion it ended on Monday.

From analysis of the NGX data, the market breadth index was negative yesterday as the bourse finished with 39 price losers and 26 price gainers, implying weak investor sentiment.

Royal Exchange topped the losers’ chart after it lost 10.00 per cent to trade at N2.52, Dangote Cement depreciated by 9.88 per cent to N520.00, RT Briscoe shrank by 9.87 per cent to N3.56, Jaiz Bank slipped by 9.87 per cent to N4.32, and Lasaco Assurance slumped by 9.77 per cent to N3.60.

On top of the gainers’ table was Nigerian Enamelware with a price appreciation of 9.95 per cent to trade at N35.90, DAAR Communications grew by 9.82 per cent to N1.23, Deap Capital expanded by 9.60 per cent to N1.94, Academy Press improved by 8.43 per cent to N9.00, and International Breweries gained 6.95 per cent to settle at N13.85.

The most active equity yesterday was Universal Insurance with the sale of 130.2 million units valued at N173.7 million, AIICO Insurance traded 100.1 million units worth N437.6 million, Mutual Benefits transacted 68.5 million units for N310.7 million, Prestige Assurance sold 66.9 million units for N135.4 million, and Regency Alliance exchanged 46.1 million units worth N69.3 million.

At the close of trades, a total of 1.0 billion stocks valued at N17.7 billion exchanged hands in 34,352 deals on Tuesday compared with the 1.2 billion stocks worth N16.2 billion traded in 38,160 deals on Monday, representing a decline in the trading volume and number of deals by 16.67 per cent and 9.98 per cent apiece and a rise in the trading value by 9.26 per cent.

By Adedapo Adesanya

Crude oil declined by about 1 per cent on Tuesday amid a possible agreement to end Russia’s invasion of Ukraine, which could ease sanctions on Russian crude oil, boosting global supply.

Brent crude shrank by 81 cents or 1.22 per cent to $65.79 a barrel and the US West Texas Intermediate (WTI) crude receded by $1.07 or 1.69 per cent to $62.35 a barrel.

Traders and investors are betting on a cease-fire to end the three-year war, but market analysts warned that if there isn’t one, there could be a bounce in oil prices.

This followed announcement by President Donald Trump of the US in a social media post that he had spoken with his Russian counterpart, Mr Vladimir Putin, after a White House meeting on Monday with the Ukrainian President, Mr Volodymyr Zelenskiy, and European allies.

The American president said arrangements were being made for a meeting between Presidents Putin and President Zelenskiy, which could lead to a trilateral summit involving all three leaders.

The Ukrainian leader described his talks with President Trump as positive and noted discussions about potential US security guarantees for Ukraine.

The American leader also confirmed the US would provide such guarantees, though the extent of support remains unclear.

Worries, however, remain that President Trump could seek to force an agreement on Russia’s terms in order to end the war.

There are some many changes that a possible truce can bring including easing secondary sanctions targeting importers of Russian oil, thereby reducing the risk of global supply disruptions and easing geopolitical tensions slightly.

Meanwhile, Chinese refineries have purchased 15 cargoes of Russian oil for October and November delivery as Indian demand for Russian exports has fallen away.

Bloomberg reported that China is estimated to have imported nearly 75,000 barrels per day of Urals crude in August, citing data by Kpler. The volumes have almost doubled compared to an average of about 40,000 barrels per day of Urals imports so far this year.

The American Petroleum Institute (API) estimated that crude oil inventories in the US fell this week, shrinking by 2.4 million barrels in the week ending August 15. So far this year, crude oil inventories are up nearly 8 million barrels.

Gasoline inventories rose by 1 million barrels and distillate inventories rose by 500,000 barrels.

The official data by the US Energy Information Administration (EIA) will be released later on Wednesday.