Investors trade N7.432bn worth of shares

The volume of transactions on the floor of Nigerian Exchange (NGX) on Wednesday increased as investors traded 291.714 million shares valued at N7.432 billion in 6213 deals. This is against 280.468 million shares worth N4.645 billion in 6296 deals on Tuesday. The market capitalisation of listed equities at the close of trading appreciated   by N13 billion or 0.04 per cent to N35.369 trillion from N35.356 trillion reported the previous day. But the NGX All Share Index depreciated by 303.70 basis points to 64625.28 points from 64928.98 points traded on Tuesday. An analysis of the investment for the day showed that  Eterna Plc led gainers table, increasing by 10 per cent to close at N17.60 per share, CWG followed with a gain of 8.61 per cent to close at N3.28 per unit, FTNCocoa gained 6.97 per cent to close at N2.15 per share, Livestock added 5.56 per cent to close at N1.90 while Vitafoam Nigeria Plc grew by 4.78 per cent to close at N21.90 per unit. On the contrary, NEM Insurance topped losers chart, dropping 10 per cent to close at N5.40 per share, SUNU Assurance trailed with a loss 8.51 per cent to close at N0.86 per share, Guinness Nigeria Plc down by 7.89 per cent to close at N0.35 per unit, Cornerstone Insurance 7.09 per cent to close at N1.31 per share, Omatek fell by 5.88 per cent to close at N0.32 per share. The result further showed that transactions in the shares of  GTCO Plc led activities with 41.746 million shares valued at N1.552 billion, Universal insurance followed with account of 22.841 million worth N5.169 million, United Bank for Africa exchanged 22.553 million shares cost N315.379 million, Sterling Bank traded 21.642 million shares worth N76.981 million Transcorp traded 15.703 million shares valued at N62.652 million.

Nigeria’s intercity transport rises by 98.88% in June -NBS

The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 percent from N649.59 in May 2023 to N1,285.41 in June 2023, the National Bureau of Statistics (NBS) has said. In its Transport Fare Watch of June 2023 posted on its website, the NBS stated that on a year-on-year basis, it rose by 120.63% from N582.61 in June 2022. Analysts have attributed the astronomical increase to fuel pump price hike following the removal of fuel subsidy by President Bola Ahmed Tinubu. Transport Fare Watch for June 2023 covers the following categories: bus journey within the city per drop constant route; bus journey intercity (state route) charge per person; air fare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and water way passenger transport. In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09% on a month-on-month basis compared to N4,002.16 in May 2023. “On a year-on-year basis, the fare rose by 55.25% from N3,662.87 in June 2022. In air travel, the average fare paid by air passengers for specified routes’ single journey increased by 4.93% from N74,948.78 in May 2023 to N78,640.54 in June 2023. On a year-on-year basis, the fare rose by 40.22% from N56,082.64 in June 2022. “The average transport fare paid on Okada transportation was N618.52 in June 2023 which was 33.14% higher than the rate recorded in May 2023 (N464.55),” the statistics bureau stated. On a year-on-year basis, the fare rose by 48.34 percent when compared with June 2022 (N416.97). For water transport (waterway passenger transportation), the average fare paid in June 2023 increased to N1,366.22 from N1,045.15 in May 2023. On a year-on-year basis, it increased by 44.84% from N943.26 in June 2022

Global current account balances to narrow in 2023 -IMF

Global current account balances increased for the third consecutive year in 2022 and are projected to narrow in 2023, the International Monetary Fund (IMF), has said. According to the Fund, the widening over the three years reflects several factors, including the unequal impact of the COVID-19 crisis in 2020–21 and the increase in commodity prices fueled by the economic recovery in 2021 and supply concerns following the Russia-Ukraine war.   In a report titled, ‘External rebalancing in turbulent times; the Fund stated that the absence of widespread sudden stops during the pandemic enabled deficit economies to avoid an abrupt contraction of their current account deficits. “Currency markets exhibited significant fluctuations in 2022, driven by changes in the terms of trade and monetary tightening,” the Fund stated.   The report stated that an accumulation of official foreign exchange reserves played a limited role in net capital outflows from emerging market and developing economies just as net creditor and debtor positions remained at historically high levels. “Over the medium term, global current account balances are expected to narrow as the impacts of the pandemic and Russia’s war in Ukraine recede. However, several risks surround this outlook, including a renewed increase in commodity prices, a slower-than-expected recovery in China, or a slower fiscal consolidation in economies with current account deficits. While the impact of geoeconomic fragmentation on global current account balances is unclear, it would unambiguously reduce global welfare. The excess global current account balances (defined as the sum of absolute values of current account surpluses and deficits in excess of their norms) have remained unchanged since 2021, after being on a declining trend for several years. While the widening of global current account balances is not necessarily a negative development, excess global current account balances can fuel trade tensions and protectionist measures or increase the risk of disruptive currency and capital flow movements. “Narrowing excess global current account balances would reduce the risk of financial crisis and improve welfare. Policy efforts, in both excess surplus and deficit economies, are required to promote external rebalancing. Where excess current account deficits in 2022 partly reflected larger-than-desired fiscal deficits, fiscal consolidation will help stabilize debt-to-GDP ratios and close current account gaps.” The Fund pointed out in the report that in economies where excess current account surpluses persist, higher fiscal spending in targeted areas will help them to meet their goals in climate, digital, and energy security, while reducing their excess surpluses. “Economies with lingering competitiveness challenges will need to address structural bottlenecks. Multilateral cooperation will help counter risks of geo-economic fragmentation, including efforts to strengthen the current rule-based trading system, and facilitate the green transition. Successfully completing the 16th General Review of Quota would ensure that the IMF is adequately resourced to serve as an anchor of the global financial safety net,” it further explained.

Naira appreciates 4.31% at investors, exporters window

On Friday, the Naira displayed a remarkable appreciation of 4.31% against the dollar at the Investors and Exporters window, reaching an exchange rate of N743.07. This significant gain was in contrast to the previous day’s rate of N776.50. The open indicative rate also closed favorably at N782.28 to the dollar on the same day. During the day’s trading, the spot exchange rate peaked at N799 to the dollar before ultimately settling at N743.07. Interestingly, the Naira was observed to have been sold as low as N475 to the dollar within the same trading session, indicating some fluctuations in the market. The Investors and Exporters window witnessed substantial activity, with a total of $121.08 million being traded on Friday. This volume of transactions reflects the ongoing dynamics in the foreign exchange market and the interests of investors and exporters in Nigeria’s currency market. The Naira’s gain at the Investors and Exporters window indicates some positive sentiment and demand for the local currency in recent trading activities. However, it is essential to keep an eye on market conditions and various economic factors that could influence future fluctuations in the exchange rate. As with any currency, the Naira’s value can be influenced by factors such as the country’s trade balance, foreign direct investments, foreign reserves, and government monetary policies. A stable and competitive exchange rate is crucial for the Nigerian economy to attract foreign investments, ensure price stability, and enhance international trade. Overall, market participants, investors, and policymakers will continue to closely monitor the Naira’s performance in the coming days to gauge the currency’s strength and stability in the face of economic challenges and global market trends.

Consumer shopping, hospitality, boost UK economy

The UK economy bounced back in April after it was boosted by stronger consumer spending in shopping and hospitality. UK gross domestic product (GDP) increased by 0.2 percent for the month after a 0.3 percent fall in March, the Office for National Statistics (ONS) revealed. The latest figure was in line with forecasts for the month from economists. ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March. “Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes. “These were partially offset by falls in health, which was affected by the junior doctors’ strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry. “House-builders and estate agents also had a poor month.”