Nigerian Markets Last Week: Naira Depreciates in Year-End Trading, Bitcoin Continues Hot Streak

The Nigerian Markets report for the week ended January 1, 2020.

Stock Market

The Nigerian Stock Exchange All-Share Index and Market Capitalization appreciated by 3.79% and 3.83% to close the week at 40,270.72 and ₦21.057 trillion, from 38,800.01 and ₦20.279 trillion, respectively.

Similarly, all other indices finished higher with the exception of NSE Banking, AFR Bank Value, and Consumer Goods while the NSE ASeM and NSE Growth Indices closed flat.

Note: It was another brief trading week as the Federal Government of Nigeria declared Monday, 28th December 2020 and Friday, 1st January 2021 as Public Holidays to celebrate Boxing day and the New Year respectively.

Also Read: Nigerian Markets Last Week: Oil Prices Down on Covid Resurgence, Manufacturing Index Slumps

Exchange Rate(s)

• At the NAFEX window, the naira closed at ₦410/$1, a record devaluation from ₦392/$1 the previous week, according to FMDQ.
• The exchange rate in the parallel or black market – where forex is traded unofficially – closed at ₦470/$1, a rise from ₦465/$1, per data from AbokiFX.

Cryptocurrencies

• Bitcoin (BTC) – ₦13,989,181 from ₦11,665,348.19
• Ethereum (ETH) – ₦345,500.99 from ₦295,201.01
• Litecoin (LTC) – ₦59,996.99 from ₦61,096.96
• Ripple (XRP) – ₦109 from ₦142

Commodities

Crude Oil

• West Texas Intermediate (WTI) – $48.52 from $48.30
• Brent Crude – $51.80 from $51.29
• Nigeria’s Bonny Light – $50.59 from $50.43

Gold – The metal closed at ₦723,753.40 from ₦711,575.84.

Cocoa – Cocoa prices fell to close at $1,738 from $1,688 the previous week.

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

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 fell to 49.6 points in December from 50.2 in November. That indicates a contraction, below the 50 benchmark.
• 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%.

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