Economy
Inflation to Moderate to 11.01% in July—FSDH
By Modupe Gbadeyanka
It has been predicted that inflation rate in Nigeria for the month of July 2019 will go down to 11.01 percent from 11.22 percent recorded in the month of June 2019.
In their Inflation Watch report, analysts at the research arm of Lagos-based investment company, FSDH Merchant Bank Ltd, attributed the expected easing of the rate “largely to the harvest season.”
The inflation rate target of the Central Bank of Nigeria (CBN) is between 6 percent and 9 percent and as earlier noted, FSDH said Nigeria will unlikely achieve a single-digit rate of inflation in the short-term.
“We must also note that an increase in the inflation rate is not entirely bad, as a reasonable increase in general prices is important to encourage production.
“No manufacturer will be encouraged to produce in an environment when the prices of the goods that are produced are going down. What most countries and central banks are guarding against is an excessive increase in general prices,” the report said.
Business Post reports that on Friday, August 16, 2019, the National Bureau of Statistics (NBS) is expected to release the July 2019 inflation figure to the general public and if this prediction is correct, it would be the second consecutive month the inflation rate is moderating and it would be the lowest inflation rate recorded in Nigeria since February 2016.
In the last few years, the apex monetary authority has been initiating several policies to help promote the agricultural sector. The aim of this is to boost agricultural yields, which would in turn kerb general price increases.
According to FSDH, the CBN’s focus on the agricultural sector is deliberate, as food prices significantly affect the country’s inflation rate.
Looking at the movement of food prices in the international market, the overall price of a basket of certain food items dropped in July relative to June 2019.
In its July 2019 Food Price Index, the United Nations Food and Agriculture Organization (FAO) observed that the prices of food items in the international market decreased during the month.
The FAO further noted that the prices of cereal, dairy products and sugar decreased between June and July 2019. The drop offset the increase in the prices of oils and meat recorded during the same period.
Despite the expected decrease in the inflation rate in the next few months, FSDH Research expects increased volatility in the inter-bank rates and a gradual increase in the rates at the Open Market Operations (OMOs) from August through to December 2019.
“This is due to huge maturities in excess of N9.62 trillion of government securities which we expect to hit the Nigerian financial market during the period.
“Ordinarily, the expected large inflow of funds into the financial system may lead to inflationary pressure.
“In this situation, the way to manage the expected high liquidity is for the CBN to increase its ‘mopping-up’ activities in the inter-bank market, leading to an increase in the OMO rate.
“Therefore, we conclude that the next few months will throw up some interesting financing and investment opportunities in the Nigerian financial market,” the report said.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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