By Adedapo Adesanya
The Naira regained strength against the Dollar at the Investors and Exporters (I&E) segment of the foreign exchange market on Tuesday, appreciating by 5 kobo or 0.01 per cent to close at N416.33/$1 compared with N416.38/$1 of the preceding session.
Low forex trades contributed to the gains posted by the local currency at the market window yesterday as the turnover for the day stood at $95.52 million, 30.2 per cent or $41.38 million lower than the $136.9 million achieved on Monday.
However, the domestic currency continued its depreciation against the American currency at the interbank segment of the market, losing 18 kobo yesterday to trade at N415.62/$1 in contrast to the previous day’s value of N415.64/$1.
But the Nigerian currency appreciated against the Pound Sterling at the same market segment on Tuesday by N1.83 to trade at N558.86/£1 compared with Monday’s N560.69/£1 and against the Euro, the Naira gained N1.29 to sell for N468.71/€1 compared to N470/€1 of the preceding session.
A look at the digital currency market on Tuesday indicated confidence is gradually returning into the space as investors continue to react to plans by the US Federal Reserve to start rein in the accommodative policy settings that fuelled a boom in risk assets.
The pullback has hit all corners of the crypto ecosystem, from stablecoins to memecoins and publicly listed crypto exchanges and at the close of business yesterday, eight of the 10 coins tracked by Business Post closed with the green colour.
Bitcoin (BTC) posted a 2.2 per cent gain to sell for N21,808,296.31, Dogecoin (DOGE) grew by 6.5 per cent to sell at N85.35, Binance Coin (BNB) recorded a 4.1 per cent appreciation to trade at N157,485.69, while Tron (TRX) added 2.5 per cent to its value to trade at N32.95.
In addition, Ethereum (ETH) improved by 1.7 per cent to sell at N1,443,970.10, Ripple (XRP) gained 1.6 per cent to trade at N357.38, Dash (DASH) recorded a 0.2 per cent appreciation to quote at N52,968.96, while Cardano (ADA) made a 0.1 per cent rise to sell at N623.00.
Conversely, Litecoin (LTC) lost 1.3 per cent to trade at N63,443.60, while the United States Dollar Tether moved downwards by 0.5 per cent to trade at N584.14.
Naira Falls at Official Market, Gains at Unofficial FX Windows
By Adedapo Adesanya
The Naira continued its roller coaster ride at the foreign exchange (FX) segments in Nigeria on Thursday, depreciating at the Investors and Exporters (I&E) window and appreciating at the Peer-to-Peer (P2P) and parallel market windows.
In the official market, the Naira lost 53 Kobo or 0.12 per cent against the United States Dollar to settle at N445.83/$1 compared with the previous day’s value of N445.83/$1.
The local currency reported the fall despite the value of FX transactions going down during the session. Data showed that the turnover for the day stood at $99.50 million, 43.9 per cent or $77.94 million lower than the $177.44 million published on Wednesday.
In the interbank segment of the forex market, the domestic currency closed flat against the Pound Sterling and the Euro yesterday at N534.67/£1 and N461.79/€1, respectively.
However, in the P2P window, the Nigerian currency appreciated against its American counterpart by N4 to close at N762/$1, in contrast to the N766/$1 it was traded on Wednesday.
In the black market, which is an unofficial FX segment just like the P2P, the Nigerian Naira appreciated against the US Dollar yesterday by N5 to trade at N745/$1.
As for the digital currency market, there was a negative movement across the 10 tokens tracked by Business Post, with Dogecoin (DOGE) recording the heaviest fall, 4.1 per cent, to sell at $0.0990.
Solana (SOL) recorded a 2.9 per cent slump to trade at $13.56, Ripple (XRP) dipped by 2.6 per cent to quote at $0.3892, and Binance Coin (BNB) slid by 2.5 per cent to settle at $288.59.
Further, Bitcoin (BTC) fell by 0.9 per cent to close at $16,941.89, Cardano (ADA) depreciated by 0.7 per cent to finish at $0.3135, Ethereum (ETH) saw a 0.6 per cent depreciation to trade at $1,273.75, and Litecoin (LTC) went down by 0.4 per cent to close at $76.50.
However, the value of the US Dollar Tether (USDT) and the Binance USD (BUSD) remained unchanged during the session at $1.00 each.
Oil Trades Mixed on Weaker Dollar, China COVID-19 Curbs
By Adedapo Adesanya
The crude oil market traded mixed on Thursday, retreating from an early rally built on weakness in the US Dollar and hopes for improved fuel demand in China after COVID-19 curbs were eased in two major Chinese cities.
Brent crude futures settled 9 cents lower at $86.88 a barrel, while the US West Texas Intermediate (WTI) crude futures settled 67 cents higher at $81.22 a barrel.
The shift in China’s zero-COVID strategy raised optimism about a recovery in oil demand there. The cities of Guangzhou and Chongqing announced an easing of COVID curbs on Wednesday.
Demonstrations in the world’s largest oil importer, which spread over the weekend to Shanghai, Beijing and elsewhere, have become a show of public defiance unprecedented since President Xi Jinping came to power in 2012.
The southwestern city of Chongqing will allow close contact with people with COVID-19 who meet certain conditions to quarantine at home.
Guangzhou, near Hong Kong, also announced an easing of curbs, but with record numbers of cases nationwide, there seems little prospect of a major reversal in the zero-COVID policy.
Oil was however supported through most of Thursday’s session by a slump in the dollar index to its lowest since August after the US Federal Reserve Chair Jerome Powell said rate hikes could slow this month.
A weaker dollar makes oil cheaper for other currency holders.
The greenback dipped to 16-week lows against a basket of major currencies on Thursday after data showed that US consumer spending increased solidly in October while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.
Mr Powell said on Wednesday that it was time to slow rate hikes, noting that slowing down at this point is a good way to balance the risks.
The prospect of a lower price cap on Russian oil is also lending support, analysts said. European Union governments tentatively agreed on Thursday on a $60 cap on Russian sea-borne oil.
Meanwhile, the market will await what the meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and allies, OPEC+, will bring come December 4, although a policy change is seen as unlikely.
“OPEC+ would rather sit on the bench at this time and assess the outcome of what happens on Monday,” an unnamed source told the news agency, Reuters, this week.
OPEC also made a meeting of its ministers planned for Saturday a virtual gathering, and OPEC+ cancelled a meeting of oil market experts, the Joint Technical Committee, that had been scheduled for Friday.
Honeywell Flour, MTN, Others Pull Market Back by 0.01%
By Dipo Olowookere
The depreciation printed by the shares of Honeywell Flour, MTN Nigeria, Ecobank and 10 others pulled back the Nigerian Exchange (NGX) Limited from the bulls’ territory into the danger zone by 0.01 per cent on Thursday.
It was the first trading session in December, and the stock market could not sustain the positive moment it recorded on the last day of the previous month due to the selling pressure on the equities mentioned above, though investor sentiment remained strong.
According to data from the bourse, the market breadth was positive yesterday as there were 15 price advancers and 13 price decliners led by Honeywell Flour, which dropped 7.89 per cent to trade at N2.10. RT Briscoe went down by 7.41 per cent to 25 Kobo, Wema Bank declined by 5.45 per cent to N3.12, FCMB contracted by 4.18 per cent to N3.21, and Cutix retreated by 2.84 per cent to N2.05.
On top of the gainers’ log was UPDC REIT, which improved its share value by 9.09 per cent to N3.00, McNichols rose by 8.93 per cent to 61 Kobo, Japaul jumped by 7.41 per cent to 29 Kobo, Nigerian Breweries 7.14 per cent to N45.00, and Royal Exchange grew by 4.76 per cent to 66 Kobo.
Yesterday, investors transacted 172.9 million shares valued at N2.8 billion in 3,073 deals compared with the 107.0 million shares valued at N1.3 billion traded in 3,227 deals in the midweek session, representing a decline in the number of deals by 4.77 per cent, an increase in the trading volume by 61.55 per cent, and a surge in the trading value by 115.63 per cent.
The increase in the market turnover was driven by the 49.8 million shares of FCMB traded by investors during the session. Courteville traded 16.9 million stocks, Access Holdings sold 12.0 million equities, UBA traded 10.8 million shares, and Zenith Bank exchanged 9.8 million shares.
Business Post reports that the insurance and energy counters went down by 0.12 per cent and 0.08 per cent, respectively, while the banking and consumer goods sectors went up by 2.16 per cent and 0.77 per cent apiece, with the industrial goods space closing flat.
At the close of trades, the All-Share Index (ASI) receded by 3.40 points to 47,656.64 points from 47,660.04 points, and the market capitalisation retreated by N2 billion to N25.957 trillion from N25.959 trillion.
Latest News on Business Post
- 2022 National Sports Festival is an Opportunity for National Talents—Minister December 2, 2022
- Carol Oyedeji Becomes Deputy Managing Director of Ecobank Nigeria December 2, 2022
- Russia-Africa Summit: Sergey Lavrov Undertakes Assessment Tour December 2, 2022
- Naira Falls at Official Market, Gains at Unofficial FX Windows December 2, 2022
- Oil Trades Mixed on Weaker Dollar, China COVID-19 Curbs December 2, 2022
- Interswitch Showcases Innovative Products to Sierra Leone December 2, 2022
- Honeywell Flour, MTN, Others Pull Market Back by 0.01% December 2, 2022
- Asha Mweru Mbowa to Lead AMI Enterprise as Managing Director December 1, 2022
- Ecobank Q3 Earnings Swell Amid 12% Jump in Non-Interest Income December 1, 2022
- NGX Helps Governments, Corporates Secure N3.5trn Debts December 1, 2022