The Nigerian currency, the naira, experienced a sharp depreciation of 20.5% to NGN993.82/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This substantial decline has raised concerns within the financial market as it impacts trade and economic stability.
Economists have raised alarm over the naira’s significant devaluation, emphasizing the potential consequences for import costs and inflation rates. While the financial community watches closely, monitoring the situation as it unfolds market analysts warn of its impact on the economy.
Nigerian Stock Market Continues Uptrend with a 1.5% Gain
Meanwhile, the trading at the Nigerian Exchange began the week on a positive note, as bargain hunting in key stocks drove the index up by 1.5% to reach 68,111.71 points. This surge in performance has led to notable monthly and year-to-date returns of +2.6% and +32.9%, respectively.
Trading activities saw investors bargain hunting in Dangote Cement (DANGCEM), with a remarkable 5.8% gain, and Stanbic IBTC Holdings (STANBIC), which surged by 9.2%.
Total trading volume increased significantly by 101.0%, reaching 430.39 million units, valued at NGN8.26 billion, in 7,656 deals. UNIVINSURE emerged as the most traded stock by volume with 94.75 million units, while GEREGU took the top spot as the most traded stock by value at NGN1.95 billion.
Several sectors contributed to the overall market performance as Industrial Goods index rose by 3.0%, Banking index 1.2% increase, while the Insurance sector experienced a 0.9% gain. The Oil & Gas index remained unchanged while Consumer Goods index also saw a slight increase of 0.4%.
Market sentiment was largely positive recording 44 gainers and 16 losers with NNFM and CHELLARAM recording the highest gains of the day, with increases of 10.0% and 9.8%, respectively.
