The Nigerian equities market traded on a bullish note on Tuesday as buying interest in the shares of ACCESSCORP and UNILEVER to gain by 3.1% and 9.7% respectively led the charge.
The All-Share Index (ASI) closed higher, gaining 30.4 points to end the session at 104,560.02 basis points. As a result, the Month-to-Date and Year-to-Date returns settled at -1.0% and +1.6%, respectively.
Similarly, valuation of equities investments listed on the local bourse saw an uptick of N19 billion to close at N65.704 trillion from N65.685 trillion it opened the session.
On the flip side, trading activities were tepid as the total volume of trade decreased by 13.9% to 368.77 million units, valued at N10.87 billion, and exchanged in 13,228 deals.
Trading statistics released by the Nigerian Exchange Limited (NGX) revealed that Fidelity Bank was the most traded stock by volume at 47.43 million units, while MTN Nigeria dominated that value chart with N2.74 billion.
Sectoral performance was mixed as the Consumer Goods (+0.7%) and Insurance (+0.2%) indices advanced, while the Industrial Goods (-0.9%) and Banking (-0.1%) indices declined. The Oil & Gas index remained unchanged.
As measured by market breadth, market sentiment was negative following the emergence of 28 losing stocks relative to 23 gainers. NNFM (-10.0%) and CAVERTON (-9.1%) led the losers, while ABBEYBDS (+9.9%) and UNILEVER (+9.7%) posted the most significant gains of the day.
Currency
In the currency market, the official FX rate of naira depreciated by 0.3% to N1,607/$1. The was driven by mounting demands in the face of squeezed fx liquidity especially with the country’s oscillating foreign reserves.
Data by the Central Bank of Nigeria showed that FX reserves lost $74 million on Monday, falling from $38 billion on Friday April 11 and the close of trades on Monday, Aprill 14.
Market analysts are warning that the spike in official exchange rates signals sustained demand for foreign exchange amidst tight dollar supply.
“The naira is clearly under pressure. With oil revenues fluctuating and foreign reserves stretched, we’re likely to see more volatility,” a currency trader in Lagos noted.
