In spite of orchestrated din and harps on the possibility of Naira’s salvation coming from the Chinese Yuan, the Naira on Wednesday began an unceremonious slide as predicted by some industry watchers, exchanging at N361.16 to the dollar at the investors window.
The ‘pundits’ prediction’ that the introduction of the Yuan would energize the Naira and weaken the Dollar, has not only failed, industry watchers insist it may also never hold waters, because the desired ground work was not fully put in place, before predictions were made. Inflation is not sliding, they are moving northwards.
“No one offsets intangibles like medical bills and school fees with Yuan. Those who advised the Government either misled them or, told them what they knew they wanted to hear! We pray it won’t worsen”, a stakeholder, Boluwatife Egbewole told the Maritime First.
The periodic interventions of the Central Bank of Nigeria (CBN) has continued, the Yuan rain has begun, but the ‘immunity’ of the Dollar, against the Naira has continued unabated.
Consequently, the citizens’ hope of a stronger Naira has been dashed, while policy initiatives have remained ‘routine’, ‘elementary’ and un-enterprising.
Meanwhile, market turnover at the window stood at 279.72 million dollars.
Though the Naira traded at N359 to the dollar at the parallel market in Lagos, the pound sterling and the euro closed at N462 and N407, respectively.
At the Bureau De Change (BDC) window, the naira was sold at N360 to the dollar, while the pound sterling and the euro traded at N462 and N407, respectively.
Perhaps for now, the Naira may remain stable at the parallel market, due largely to the interventions of the CBN. But any hope of its getting strong enough to fetch the masses a higher purchasing power, at this rate, may sadly remain a mirage!
In the meantime, the Nigerian equities market on Wednesday painfully continues its bearish run, with 0.56 percent, following losses in 26 stocks, which simply translated into market capitalization loss of N77 billion, to close at N13.667 trillion, against N13.743 trillion on Tuesday.
Finally and successfully emasculated, the masses have gone to bed, watching, praying, hoping, and yet knowing that the light at the end of the tunnel, except for divine intervention, may not further dim.
Ideas turn things around. Vibrant ideas spin the wheel. The desired ideas are lacking, because the required impetus, altruism and commitment are waning.
The All Share Index (ASI) shed 158.08 points or 0.56 per cent to close at 28,042.80 compared with 28,200.58 achieved on Tuesday.
The informed say the downturn was impacted by losses recorded in medium and large capitalized stocks, amongst which are: Nestle Nigeria, Julius Berger, Guinness Nigeria, Unilever Nigeria and Flour Mills Nigeria.
Mr. Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that the continuous sell-off seen in the market was due to negative sentiment.
Omordion attributed the ‘sell pressure’ in blue-chip stocks to ‘political risk’.
He claimed that delay in appointment of ministers was affecting economic growth and development.
Now, nobody has told us what caused the delay, in the appointment of the new Ministers. Or, why the ‘sell pressure’ has suddenly become a permanent feature of the Nigeria Stock Exchange!
Market breadth was negative, with only eight gainers, against 26 losers.
AG Leventis Nigeria recorded the highest price gain of 10 per cent, to close at 33k per share.
Chams followed with a gain of eight per cent to close at 27k per share, while Mutual Benefits Assurance appreciated by five per cent to close at 21k, per share.
Courteville Business Solutions went up by 4.76 per cent to close at 22k, while Consolidated Hallmark Insurance appreciated by 3.33 per cent to close at 31k per share.
On the other hand, Julius Berger led the losers’ chart with a loss of 9.77 per cent, to close at N18, per share.
Nigerian Aviation Handling Company (NAHCO) followed with a decline of 9.62 per cent to close at N2.35, while Unity Bank declined by 9.23 per cent to close at 59k per share.
AXA Mansard Insurance depreciated by 8.33 per cent to close at N1.65 and Honeywell Flour Mills declined by 7.07 per cent to close at 92k per share.
The total volume traded appreciated by 13.84 per cent with 243.72 million shares worth N3.89 billion traded in 3,449 deals.
This is in contrast with a turnover of 217.13 million shares valued at N1.79 billion exchanged in 3,595 deals on Tuesday.
Transactions in the shares of Guaranty Trust Bank topped the activity chart with 77.51 million shares valued at N2.27 billion.
FBN Holdings followed with 29.47 million shares worth N163.77 million, while United Bank for Africa traded 13.64 million shares valued at N76.50 million.
Zenith Bank traded 13.28 million shares worth N247.42 million, while Lasaco Assurance accounted for 11.3 million shares valued at N3.92 million.