Naira Falls to N1,476.24/$1 at Official Market

The Naira performed badly against the United States Dollar in the in the Nigerian Autonomous Foreign Exchange Market (NAFEX) after resumption of trading activities following the Democracy Day holiday observed on Wednesday.

Yesterday, the value of the Naira weakened by 0.17 per cent or N2.58 to sell at N1,476.24/$1, in contrast to Tuesday’s closing price of N1,473.66/$1.

However, the local currency appreciated against the Pound Sterling in the official market during the session by N7.23 to wrap the session at N1,876.39/£1 versus the preceding session’s N1,883.62/£1 and against the Euro, it gained N11.84 to trade at N1,580.19/€1 versus N1,592.03/€1.

The mixed trading outcome happened as FX supply to the spot market depreciated by 75.9 per cent or $239.23 million to $92.68 million from the $385.91 million recorded in the preceding session.

In the black market, the domestic currency depreciated against the American currency during the trading day by N10 to settle at N1,490/$1, in contrast to the preceding session’s rate of N1,480/$1.

Meanwhile, in the cryptocurrency market, the benchmarked tokens recorded depreciation as the US Producer Price Index (PPI) print for May came in lower than expectations across the board, showing inflation to be losing steam.  Technically a positive sign for risk assets and crypto, the latter offered a cool reaction to PPI.

Solana (SOL) slumped by 4.6 per cent to trade at $148.06, Cardano (ADA) dropped 3.5 per cent to close at $0.4226, Binance Coin (BNB) went south by 2.9 per cent to finish at $601.18, and Dogecoin (DOGE) recorded a value depreciation of 2.6 per cent to sell at $0.1419.

In addition, Ethereum (ETH) slid by 2.4 per cent to finish at $3,481.39, Ripple (XRP) fell by 2.3 per cent to settle at $0.4794, and Bitcoin (BTC) recorded a 2.1 per cent loss to sell for $66,926.75.

However, Litecoin (LTC) recorded a 0.9 per cent rise to close at $79.23, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

By Adedapo Adesanya

Nigerian Stocks Rebound by 0.20% After Democracy Day Break

The first trading session on the floor of the Nigerian Exchange (NGX) Limited ended on a positive note on Thursday after a 0.20 per cent appreciation at the close of transactions.

On Tuesday, the market surprisingly closed bearish despite strong investor sentiment, but this negative trend was reversed yesterday amid renewed interest in Nigerian stocks.

The insurance sector appreciated by 1.80 per cent, the banking index gained 0.98 per cent, the consumer goods space rose by 0.30 per cent, and the industrial goods counter improved by 0.12 per cent, while the energy sector closed flat.

At the close of business, the All-Share Index (ASI) increased by 201.74 points to 99,832.25 points from 99,630.51 points and the market capitalisation expanded by N114 billion to N56.474 trillion from N56.360 trillion.

Investor sentiment remained bullish yesterday after the bourse ended with 30 price gainers and 17 price losers, representing a positive market breadth index.

Nigerian Breweries advanced by 10.00 per cent to N31.90, Unity Bank surged by 9.91 per cent to N1.22, NEM Insurance was elevated by 9.77 per cent to N9.55, Thomas Wyatt leapt by 9.43 per cent to N1.74 and UAC Nigeria jumped by 8.65 per cent to N14.45.

On the flip side, Ecobank lost 9.92 per cent to N21.35, DAAR Communications shrank by 8.77 per cent to 52 Kobo, C&I Leasing declined by 7.14 per cent to N2.60, RT Briscoe weakened by 5.08 per cent to 56 Kobo, and Custodian Investment also went down by 5.08 per cent to N9.35.

Business Post reports that traders bought and sold 502.6 million equities worth N8.7 billion in 9,686 deals on Thursday compared with the 849.0 million equities worth N16.6 billion traded in 8,064 deals in the preceding session, representing a rise in the number of deals by 20.11 per cent, and a fall in the trading volume and value by 40.80 per cent and 47.59 per cent, respectively.

Zenith Bank finished the day as the busiest stock after trading 71.2 million units for N2.5 billion, AIICO Insurance traded 67.3 million units worth N65.9 million, Access Holdings exchanged 58.5 million units valued at N1.1 billion, GTCO sold 46.9 million units for N2.0 billion, and UBA transacted 23.2 million units valued at N520.6 million.

By Dipo Olowookere

11 Plc, Two Others Lift NASD OTC Market by 0.15%

There was a 0.15 per cent gain at the NASD Over-the-Counter (OTC) Securities Exchange on Thursday, June 13 after the market resumed following the Democracy Day break the previous day.

11 Plc led the charge yesterday after it gained N18.45 to end at N202.95 per share compared with the previous session’s N184.50 per share, Central Securities Clearing System (CSCS) appreciated by 1o Kobo to close at N19.99 per unit versus the preceding session’s N19.89 per unit, and Food Concepts Plc gained 1 Kobo to sell for N2.15 per unit, in contrast to Tuesday’s value of N2.14 per unit.

Conversely, Aradel Holdings Plc depreciated by N20.13 to trade at N5,000 per share versus the previous day’s closing price of N5,020.13 per share.

At the close of business, the market capitalisation increased during the session by N3.05 billion to settle at N2.097 trillion compared with the previous day’s N2.094 trillion and the NASD Unlisted Security Index (NSI) recorded a rise by 2.22 points to end the day at 1,530.45 points as against the 1,528.23 points recorded at the previous session.

Yesterday, the volume of securities traded at the bourse jumped by 738.9 per cent to 5.1 million units from the 602,380 units transacted a day earlier.

However, the value of shares bought and sold by the market participants decreased by 41.4 per cent to N177.8 million from the N303.4 million recorded in the preceding trading day.

Also, the number of deals carried out during the session went down by 42.3 per cent to 30 deals from the 52 deals executed in the previous trading session.

Aradel Holdings Plc was the most active stock by value (year-to-date) with 6.0 million units sold for N15.4 billion, CSCS Plc was second with 101.3 million units worth N2.5 billion, and Capital Hotels Plc was third with 228.6 million units valued at N1.1 billion.

Capital Hotels Plc closed the day as the most active stock by volume (year-to-date) with 228.6 million units worth N1.1 billion, the second was Mixta Real Estate Plc with 139.8 million units valued at N240.1 million, and the third was CSCS Plc with 101.3 million units sold for N2.5 billion.

By Adedapo Adesanya

World Bank Approves $2.25bn to Strengthen Nigeria’s Economy

The World Bank has approved two significant financial operations aimed at boosting Nigeria’s economic stability and providing support to millions of vulnerable citizens amid reforms.  

According to a statement from the bank late on Thursday, the combined package, totalling $2.25 billion, comprises the $1.5 billion Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and the $750 million Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).  

The funding is intended to provide immediate financial and technical support for Nigeria’s urgent economic stabilization efforts. 

It also aims to enhance the country’s non-oil revenue generation and safeguard oil revenues, thereby promoting fiscal sustainability and enabling the delivery of quality public services.

“This combined $2.25 billion package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and scale up support to the poor and most economically at risk.

“It further supports Nigeria’s ambitious, multi-year effort to raise non-oil revenues and safeguard oil revenues to promote fiscal sustainability and provide sufficient resources to deliver quality public services,” the Bretton-Wood institution said.

Speaking on the injection, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, expressed optimism about the reforms.

“We have embarked on bold and necessary reforms to restore macroeconomic stability and put the country back on a sustainable and inclusive economic growth path that will create quality jobs and economic opportunities for all Nigerians.

“We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our macro-fiscal and social protection policy reforms, consistent with accelerating investment and redirecting public resources sustainably to achieve development priorities,” it added.

On his part, Mr Ousmane Diagana, the World Bank Vice President for Western and Central Africa, highlighted the importance of sustaining the reform momentum.

“Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms place it on a new path which can stabilize its economy and lift its people out of poverty. It is critical to sustain the reform momentum and continue to scale up and expand protection to the poor and economically at risk to cushion the effects of cost-of-living pressures on citizens.

“This financing package reinforces the World Bank’s strong partnership with Nigeria, and our support towards reinvigorating its economy and fast-tracking poverty reduction, which can serve as a beacon for Africa,” he said.

By Adedapo Adesanya

World Bank, WTO, NITDA Move To Enhance Digital Trade

The National Information Technology Development Agency (NITDA), the World Bank and the World Trade Organisation (WTO) have teamed up to accelerate diversification through industrialisation and digital trade.

This was made known when the DG of NITDA, Kashifu Inuwa, played host to a delegation from the World Bank and the WTO, led by Mr Aleksandar Stojanov at the agency’s corporate headquarters in Abuja yesterday.

The meeting was centered on fostering deep collaboration between the two organisations to enhance digital trade, cross-border data services and sharing ideas on developing regulatory policies that would accelerate economic growth through technological innovations.

Speaking on the agency’s move to review most of its regulations, Inuwa said: “We started with recrafting our Strategic Roadmap and Action Plan 2.0 for 2024-2027 which has eight strategic pillars, among which is Strengthening Policy Implementation and Legal Framework, and what we need to put in place to make sure we create an enabling environment for the digital economy and digital trade.”

He highlighted key regulatory advancements and revealed that NITDA was at an advanced stage of establishing a National Public Key Infrastructure (PKI) which would underpin the nation’s electronic signature framework.

He further said, “The EU just developed a Cyber Resilience Act which covers all these software and hardware testing issues so we can also have one instrument that can look at the cyber resilience, the software, hardware, firmware issues and even the national cyber security architecture could be part of that.”

He expressed the agency’s willingness to collaborate with individuals, organisations and experts to refine and implement all these strategic initiatives in optimising Nigeria’s digital landscape.

In his earlier address, Mr Stojanov shared their initial findings from the digital trade regulatory gap analysis conducted by the World Bank on the continent, particularly in Nigeria, and how regulations could play a critical role in enhancing it.

By Zakariyya Adaramola