- Tinubu welcomes Nigeria’s trade report, vows to tackle economic challenges
On Thursday, the domestic bourse showed resilience, with the All-Share Index rising by 0.32 percent to close at 97,025.17 points.
The market maintained a positive trajectory, with 27 stocks advancing against 22 decliners.
Consequently, the market capitalization of listed equities increased by 0.32 percent to N55.75 trillion, resulting in a collective gain of N178 billion for investors.
This upward movement was driven by notable performances in key stocks such as CAVERTON, FBNH, FLOURMILL, RTBRISCOE, and NESTLE, which posted significant gains of +10.00 percent, +10.00 percent, +9.99 percent, +9.93 percent, and +9.88 percent, respectively.
Despite the market rally, trading activity on the NGX was subdued, with traded volume and value declining by 34.91 percent and 9.44 percent to 390.55 million units and N7.97 billion, respectively, while total deals slightly increased by 0.72 percent to 9,615 deals.
Sector performance was mixed; the Banking, Consumer Goods, and Industrial Goods indices gained 1.52 percent, 0.55 percent, and 0.003 percent, respectively, whereas the Insurance and Oil/Gas indices recorded losses of 0.41 percent and 0.63 percent.
ACCESSCORP led the activity chart, emerging as the most actively traded stock with 80.05 million units worth N1.48 billion across 434 deals.
NIBOR rates moderated across most maturities, reflecting improved money market conditions.
Likewise, key money market rates such as the Open Repo Rate (OPR) and Overnight Lending Rate (O/N) decreased by 0.23 percent and 0.11 percent to close at 31.00 percent and 31.53 percent, respectively.
Nigerian Interbank Treasury Bills True Yield (NITTY) witnessed upward movement across most maturities due to sell pressure from traders seeking higher yields.
The average secondary market yield on T-bills moderated by 0.01 percent to 18.23 percent.
Turning to the secondary market for FGN Bonds, negative market activity was observed, with weak interest in short and mid maturities driving a 6bps increase in the average secondary market yield, reaching 18.79 percent.
In Nigeria’s sovereign Eurobonds market, buy pressure at the short, mid and long ends of the yield curve led to a 0.13 percent decrease in the average yield to 10.03 percent.
In the foreign exchange market, the Naira depreciated by 5.84 percent, closing at ₦1,649.76 per dollar at the official market. In the Parallel market, the Naira closed at ₦1,646 to the dollar.
Tinubu welcomes Nigeria’s trade report, vows to tackle economic challenges
President Bola Tinubu has welcomed the National Bureau of Statistics’ new report on the country’s trade balance.
The report stated that Nigeria recorded another trade surplus in the second quarter of 2024, hitting N6.95trn, essentially driven by exports to Europe, the United States and Asia.
“The current surplus is 6.60 per cent higher than the N6.52trn surplus recorded in the first quarter,” Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, quoted the report in a statement he signed on Thursday.
In its Q2 2024 report, the NBS revealed that European and American countries dominated Nigeria’s top export destinations.
Spain emerged as the largest export partner, receiving goods valued at N2.01trn, accounting for 10.34 per cent of Nigeria’s total exports.
The United States followed closely with N1.86 trn (9.56 per cent), while France imported N1.82 trn of Nigerian goods, representing 9.37 per cent of total exports.
Nigeria’s other major export partners include India (N1.65trn or 8.50 per cent) and the Netherlands (N1.38trn).
According to Onanuga, “Just days after the country recorded almost 100 per cent oversubscription of its first $500m domestic bond and half-year revenue of N9.1trn, the latest report underscores the increasing positive shifts in the economy over the last year.
“President Tinubu expresses confidence in the reforms his administration is pursuing and believes they will create a more robust economy that will usher in a new era of prosperity for Nigerians.”
He noted that the NBS report reflects the country’s strong export performance in the second quarter.
Although total merchandise trade in Q2 2024 stood at N31.89trn, a 3.76 per cent decline compared to the preceding quarter (Q1 2024), it marked a 150.39 per cent rise from the corresponding period in 2023.
Also, total exports stood at N19.42trn, accounting for 60.89 per cent of the country’s total trade.
This represents a 1.31 per cent increase from N19.17trn in the first quarter and a 201.76 per cent surge from N6.44trn recorded in Q2 2023.
The dominance of crude oil exports remains a key factor in this performance, contributing N14.56trn, or 74.98 per cent of total exports.
Non-crude oil exports, valued at N4.86trn, comprised 25.02 per cent of the total export value, with non-oil products contributing N1.94trn.
The strong export performance, particularly in crude oil, ensured Nigeria maintained a favourable trade balance.
The presidential aide asserted that “Generally, the economic indicators, which were very low when President Tinubu assumed office last year, are turning positive.”
He said, “The government will continue to consolidate on the gains of the reforms as more fiscal and tax policy reforms already embarked upon by the administration come to fruition, adding, “President Tinubu is determined to confront the inhibitions that have stunted the growth and development necessary to unlock the country’s full potential.”
