MARKET GAINS N29BN AS CBN REVIEWS FOREX POLICY

The Nigerian equities market appreciated by N29bn on Monday as the Central Bank of Nigeria released a new foreign exchange policy in the country with immediate effect. The Nigerian Stock Exchange market capitalisation rose to N8.738tn from N8.709tn, while the NSE All-Share Index closed at 25,249.49 basis points from 25,164.91 basis points. The new policy is the outcome of the last Thursday’s directive by the National Economic Council for immediate review to stem the widening gap between the inter-bank foreign exchange and parallel market rates. The CBN said in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, it would henceforth be providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, with immediate effect. The equities market started the week on a positive note, advancing by 0.34 per cent, to settle the year-to-date return at -6.05 per cent. There were 10 gainers and 18 losers. A total of 110.016 million shares worth N985.667m were traded in 2,160 deals. PZ was the top gainer for the second consecutive trading day, advancing by 9.04 per cent, to close at a year high of N14.60. Diamond Bank Plc, Nascon Allied Industries Plc, Nigerian Breweries Plc and Caverton Offshore Support Group Plc also appeared on the top gainers’ list appreciating by 4.88 per cent, 4.55 per cent, 4.18 per cent and 3.33 per cent, respectively. Meanwhile, Forte Oil Plc declined the most in share price by 5.02 per cent to close at N53.87. UACN Plc, Nigerian Aviation Handling Company Plc, Honeywell Flour Mill Plc and Neimeth International Pharmaceuticals Plc also appeared on the top losers’ table dropping by 4.95 per cent, 4.67 per cent, 4.55 per cent and 4.35 per cent, accordingly. The NSE food and beverage index was the only index to close positive, with the oil/gas, banking and insurance indices declining by 0.63 per cent, 0.20 per cent and 0.11 per cent, respectively, while the industrial index  traded flat.