Nigerian Markets Last Week: Oil Prices Maintain Gain As Equities, Cryptocurrencies Surge

The Nigerian Markets report for the week ended December 18, 2020.

Stock Market

The Nigerian Stock Exchange All-Share Index and Market Capitalization appreciated by 7.46% to close last week at 36,804.75 and ₦19.236 trillion respectively, from 34,250.74 and ₦17.902 trillion, respectively. Similarly, all other indices finished higher while the NSE ASeM and NSE Growth Indices closed flat.

Exchange Rate(s)

• At the NAFEX window, the naira closed at ₦394/$1, the same as the previous week, according to FMDQ.
• The exchange rate in the parallel or black market – where forex is traded unofficially – closed at ₦477/$1, a decline from ₦475/$1 the previous week, per data from AbokiFX.

Cryptocurrencies

• Bitcoin (BTC) – ₦10,831,000.00 from ₦8,684,200.95
• Ethereum (ETH) – ₦306,001.00 from ₦263,899.00
• Litecoin (LTC) – ₦51,689.08 from ₦35,099.99
• Ripple (XRP) – ₦275.56 from ₦274.90

Also Read: Nigerian Markets Last Week: Brent Crude Hits $50 Per Barrel As Stocks, Crypto Slump

Commodities

Crude Oil – International benchmarks West Texas Intermediate (WTI) and Brent Crude futures closed Friday at $48.91 and $51.99, from $46.47 and $49.92 the previous week, respectively. Nigeria’s Bonny Light closed at $51.01 from $50.70.

• Optimism about Covid-19 vaccines is driving oil prices higher and energy stocks are now on course to see their largest quarterly gain since 1989, according to OilPrice.
• In midday trading on Friday, Brent was over $52 in spite of record Covid-19 infections in the United States.

Gold – The metal closed at ₦715,876.95 from ₦699,770.14.

Cocoa – Cocoa prices fell to close at $1,700.00 from $1,614 the previous week.

Also Read: Nigerian Markets Last Week: Oil Rallies on OPEC+ Agreement, Cryptocurrencies Record Weekly Gain

Economic Indicators

• Recession – The Nigerian economy is in a recession after GDP contracted for the second consecutive quarter: -3.62% in Q3 after -6.10% in Q2 2020, per data from the National Bureau of Statistics.
• Inflation – Nigeria’s annual inflation rate is currently estimated to be at 14.89% (for November 2020).
• Manufacturing –The Central Bank of Nigeria composite Purchasing Managers’ Index for the manufacturing sector rose to 50.2 in November from 49.4 in October. That indicates an expansion, above the 50 benchmark, after six consecutive months of contraction in factory activity.
• Monetary Rates – as of the last CBN Monetary Policy Committee in November: Monetary Policy Rate at 11.5%; Cash Reserve Ratio at 27.5%; Asymmetric corridor of +100/-700 basis points around the MPR; Liquidity Ratio at 30%.