5-year naira futures hit N578, dollar scarcity strengthens Last week Nigeria’s central bank withdrew around N460 billion from Nigeria’s banking system. Published 36 mins ago on June 10, 2020By Olumide Adesina Having so much naira wealth does not guarantee you getting dollars The Nigerian naira was quoted at N578.37 to $1 at the currency futures market on Wednesday, just off a record low of N584.11 recorded last week as dollar scarcity for businesses and individuals in genuine need continued to raise concerns. Nigeria’s local currency has been hitting record lows on the parallel and otc spot markets since early March when Nigeria’s central bank adjusted the value of the naira by 15%. Introduced about four months ago, the 5-year naira futures traded above the N550 to $1 last month at the derivatives market based on dollar scarcity recorded at the spot market. Commercial bankers, however, stated that Nigeria’s central bank has been trying to improve the liquidity on the interbank market. Last week Nigeria’s central bank withdrew around N460 billion from Nigeria’s banking system, banking sources told Reuters. GTBank 728 x 90 The bank has resumed dollar sales to local clients, selling around $100 million per week, but has yet to sell to foreign-based investors, traders say, after it scrapped a planned auction because of lockdown measures to slow the COVID-19 pandemic. Local Importers were left scrambling for dollars while providers of foreign exchange, such as foreign investors have not returned back to the country. “Liquidity on the over-the-counter spot market touched a low of around $31 million on Wednesday from around $300 million a day last year,” currency traders told Reuters. The naira closed at 387.08 on the spot market, while the two-week currency futures trading at 389.84. The naira was quoted at 361 on the official market, backed by Nigeria’s central bank. app CONTINUE READINGMARKETSBears reverse gains at Nigerian Stock Market, investors lose N62.6 billion Performance across sectors under coverage was bearish as 3 indices declined relative to 2 gainers. Published 4 hours ago on June 10, 2020By Olumide Adesina Nigerian banking stocks remain most liquid stocks, as investors gain N25.1 billion The equities market erased yesterday’s gains as the All-Share Index declined 47bps to close at 25,215.04 points. Consequently, investors lost N62.6bn as market capitalization settled at N13.1trillion. A turnover of 266.64 million shares valued at N3.18 billion in 3,978 deals was recorded in today’s trading. GUARANTY was the most traded stock by volume and value at 69.4 million units, value at N1.67 billion. Performance across sectors under coverage was bearish as 3 indices declined relative to 2 gainers. The Industrial (-2.54%) index lost the most, following profit-taking in BUACEMENT (-3.94%). Likewise, sell pressures in GUINNESS (-2.78%) and ZENITH BANK (-1.87%) dragged the Consumer Goods (-0.27%) and Banking (-0.14%) indices lower. On the flip side, price appreciation in MBENEFIT (+9.09%) and OANDO (+1.82%) buoyed gains in the Insurance (+1.44%) and Oil & Gas (0.20%) indices respectively. GTBank 728 x 90 Investor sentiments as measured by market breadth index were slightly negative with 19 losers against 18 gainers. BERGER (+10.00%) led the gainer’s chart while CILEASING (-9.43%) was the top loser. Top gainers BERGER up 10.00% to close at N7.7, NEIMETH up 9.86% to close at N2.34, UPDCREIT up 8.57% to close at N3.8, OKOMUOIL up 4.69% to close at N67, GUARANTY up 0.62% to close at N24.2. Top Losers CILEASING down 9.43% to close at N4.8, UACN down 9.09% to close at N7.5, BUACEMENT down 3.94% to close at N41.5, GUINNESS down 2.78% to close at N17.5, ZENITH BANK down 1.78% to close at N16.6. app Outlook. Profit-taking increased on Wednesday across most sectors in the Nigerian bourse, Nairametrics envisages cautious buying, as market liquidity remained very low. CONTINUE READINGMARKETSGold price up ahead Fed Policy meeting details Gold was up again on Wednesday in Asia, leveraging on its gains from the previous session. The safe-haven asset had jumped by 1.2% during the previous session. Published 4 hours ago on June 10, 2020By Lawretta Egba Gold market Gold was up again on Wednesday in Asia, leveraging on its gains from the previous session. The safe-haven asset had jumped by 1.2% during the previous session, after which Gold futures?moved up to the price of $1722.75 as at 4pm local time. Also worthy of note is that a number of stocks, which typically move inversely to gold, were predominantly up. Read Also: Gold down over increased investor confidence in economic recovery The price increase was as a result of the optimism of investors, albeit cautiously, ahead of the U.S. Federal Reserve unveiling key details from its policy meeting, which is scheduled to be concluded later in the day. This optimism rests on expectations that the details of the policy meeting will include even more stimulus measures for the U.S economy towards revamping it against the backdrop of disruptions caused by the Covid-19 pandemic. READ ALSO: Nigerian banking stocks remain most liquid stocks, as investors gain N25.1 billion GTBank 728 x 90 David Meger, director of metals trading at High Ridge Futures, in a conversation with CNBC explained that “The expectations of further Fed stimulus are in the forefront of what’s been supporting gold over the last couple of days. In addition, we’re also seeing global equities tick lower slightly across the board.” [Read Also: Gold down over increased investor confidence in economic recovery] “We’re seeing unprecedented amount of global liquidity and that underlying fundamental environment is extremely supportive for gold,” he added. Download the News App app CONTINUE READINGADVERTISEMENT Wealth.ng ADVERTISEMENT ADVERTISEMENT Patricia ADVERTISEMENT devland ADVERTISEMENT financial calculator LATEST TRENDINGHaving so much naira wealth does not guarantee you getting dollars MARKETS36 mins ago5-year naira futures hit N578, dollar scarcity strengthens Ayade signs PPP agreement for $15m cocoa city project with Israeli Company ECONOMY & POLITICS1 hour agoAyade signs PPP agreement for $15m cocoa city project with Israeli company BUSINESS NEWS4 hours agoUber Introduces Uber Cash In NigeriaADVERTISEMENT app ADVERTISEMENT Nairametrics ABOUT US TEAM NAIRAMETRICS CONTACT US CAREERS ANDRIOD APP IOS APP DISCLAIMER PRIVACY POLICY Copyright © 2020 close

5-year naira futures hit N578, dollar scarcity strengthens 

Last week Nigeria’s central bank withdrew around N460 billion from Nigeria’s banking system.

Published 36 mins ago on June 10, 2020By Olumide Adesina Having so much naira wealth does not guarantee you getting dollars

The Nigerian naira was quoted at N578.37 to $1 at the currency futures market on Wednesday, just off a record low of N584.11 recorded last week as dollar scarcity for businesses and individuals in genuine need continued to raise concerns.  

Nigeria’s local currency has been hitting record lows on the parallel and otc spot markets since early March when Nigeria’s central bank adjusted the value of the naira by 15%. 

 

Introduced about four months ago, the 5-year naira futures traded above the N550 to $1 last month at the derivatives market based on dollar scarcity recorded at the spot market. 

Commercial bankers, however, stated that Nigeria’s central bank has been trying to improve the liquidity on the interbank market. 

Last week Nigeria’s central bank withdrew around N460 billion from Nigeria’s banking system, banking sources told Reuters. 

GTBank 728 x 90

The bank has resumed dollar sales to local clients, selling around $100 million per week, but has yet to sell to foreign-based investors, traders say, after it scrapped a planned auction because of lockdown measures to slow the COVID-19 pandemic. 

 Local Importers were left scrambling for dollars while providers of foreign exchange, such as foreign investors have not returned back to the country. 

“Liquidity on the over-the-counter spot market touched a low of around $31 million on Wednesday from around $300 million a day last year,” currency traders told Reuters. 

The naira closed at 387.08 on the spot market, while the two-week currency futures trading at 389.84. The naira was quoted at 361 on the official market, backed by Nigeria’s central bank. 

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CONTINUE READINGMARKETSBears reverse gains at Nigerian Stock Market, investors lose N62.6 billion

Performance across sectors under coverage was bearish as 3 indices declined relative to 2 gainers.

Published 4 hours ago on June 10, 2020By Olumide Adesina Nigerian banking stocks remain most liquid stocks, as investors gain N25.1 billion

The equities market erased yesterday’s gains as the All-Share Index declined 47bps to close at 25,215.04 points.

Consequently, investors lost N62.6bn as market capitalization settled at N13.1trillion. 

 

A turnover of 266.64 million shares valued at N3.18 billion in 3,978 deals was recorded in today’s trading. GUARANTY was the most traded stock by volume and value at 69.4 million units, value at N1.67 billion.  

Performance across sectors under coverage was bearish as 3 indices declined relative to 2 gainers. The Industrial (-2.54%) index lost the most, following profit-taking in BUACEMENT (-3.94%). Likewise, sell pressures in GUINNESS (-2.78%) and ZENITH BANK (-1.87%) dragged the Consumer Goods (-0.27%) and Banking (-0.14%) indices lower. 

On the flip side, price appreciation in MBENEFIT (+9.09%) and OANDO (+1.82%) buoyed gains in the Insurance (+1.44%) and Oil & Gas (0.20%) indices respectively.  

GTBank 728 x 90

Investor sentiments as measured by market breadth index were slightly negative with 19 losers against 18 gainers. BERGER (+10.00%) led the gainer’s chart while CILEASING (-9.43%) was the top loser. 

Top gainers 

BERGER up 10.00% to close at N7.7, NEIMETH up 9.86% to close at N2.34, UPDCREIT up 8.57% to close at N3.8, OKOMUOIL up 4.69% to close at N67, GUARANTY up 0.62% to close at N24.2. 

Top Losers 

CILEASING down 9.43% to close at N4.8, UACN down 9.09% to close at N7.5, BUACEMENT down 3.94% to close at N41.5, GUINNESS down 2.78% to close at N17.5, ZENITH BANK down 1.78% to close at N16.6. 

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Outlook. 

Profit-taking increased on Wednesday across most sectors in the Nigerian bourse, Nairametrics envisages cautious buying, as market liquidity remained very low. 

 

CONTINUE READINGMARKETSGold price up ahead Fed Policy meeting details

Gold was up again on Wednesday in Asia, leveraging on its gains from the previous session. The safe-haven asset had jumped by 1.2% during the previous session.

Published 4 hours ago on June 10, 2020By Lawretta Egba Gold market

Gold was up again on Wednesday in Asia, leveraging on its gains from the previous session. The safe-haven asset had jumped by 1.2% during the previous session, after which Gold futures?moved up to the price of $1722.75 as at 4pm local time.

Also worthy of note is that a number of stocks, which typically move inversely to gold, were predominantly up.

 

Read Also: Gold down over increased investor confidence in economic recovery

The price increase was as a result of the optimism of investors, albeit cautiously, ahead of the U.S. Federal Reserve unveiling key details from its policy meeting, which is scheduled to be concluded later in the day. This optimism rests on expectations that the details of the policy meeting will include even more stimulus measures for the U.S economy towards revamping it against the backdrop of disruptions caused by the Covid-19 pandemic.

READ ALSO: Nigerian banking stocks remain most liquid stocks, as investors gain N25.1 billion

GTBank 728 x 90

David Meger, director of metals trading at High Ridge Futures, in a conversation with CNBC explained that “The expectations of further Fed stimulus are in the forefront of what’s been supporting gold over the last couple of days. In addition, we’re also seeing global equities tick lower slightly across the board.”

[Read Also: Gold down over increased investor confidence in economic recovery]

“We’re seeing unprecedented amount of global liquidity and that underlying fundamental environment is extremely supportive for gold,” he added.

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LATEST TRENDINGHaving so much naira wealth does not guarantee you getting dollars

MARKETS36 mins ago5-year naira futures hit N578, dollar scarcity strengthens Ayade signs PPP agreement for $15m cocoa city project with Israeli Company

ECONOMY & POLITICS1 hour agoAyade signs PPP agreement for $15m cocoa city project with Israeli company

BUSINESS NEWS4 hours agoUber Introduces Uber Cash In NigeriaADVERTISEMENT

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