Exchange Down 0.42% As Naira Settles At 296 To 1 $

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Trading on the Nigerian Stock Exchange closed Tuesday on a negative note as the All Share Index dropped by 0.42 per cent to close at 22,456.32 points from 22,550.83 on Monday while market capitalisation also dropped from N7.756 trillion to N7.723 trillion.

The market recorded only 24 gainers today led by International Breweries with a gain of N1.40 or 9.40 per cent to N16.30 followed by NEM Insurance with a gain of N0.05 or 8.62 per cent to close at N0.63 Unity Bank that gained N0.59 or 8.47 per cent to close at N0.64 per share.

On the other hand, Okomu Oil topped 27 stocks on the losers’ chart with N3.02 loss or 9.74 per cent to close at N27.99 followed by Guinness that lost 9.89 or 9.61 per cent to close at N93.00 per share, and Champion Breweries that lost N0.29 or 8.58 per cent to close at N3.09 per share.

Altogether, a total of 256,439,035 shares worth N1.974 billion exchange hands in 4,731 deals.

Meanwhile, the Naira, yesterday, appreciated to N296 per dollar in the parallel market due to expectation that the Central Bank of Nigeria (CBN) will sell autonomous dollar to bureaux de change this week and thus the Naira appreciated by N4 as the parallel market exchange rate dropped from N300 per dollar on Friday to N296 at the close of business yesterday.

In Abuja, the Naira appreciated by N5 as the parallel market rate fell to N295 from N300, while in Kano, the Naira gained N2 as the parallel market exchange rate dropped to N298 from N300.

Last Friday, the CBN had pledged to explore the option of selling autonomous dollars sourced from oil firms to BDCs so as to address the sharp and stead depreciation of the Naira in the parallel market.

This was an outcome of a meeting held, yesterday, between the management of the CBN led by the Governor, Mr. Godwin Emefiele and the Executive Council of Association of Bureaux de Change Operators of Nigeria.

Last week Monday, the CBN stopped the direct sale of dollars to BDCs, a situation which triggered N35 depreciation of the Naira in the parallel market as the exchange rate in the market moved from N280 per dollar on Monday to N305 on Wednesday.

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