Business
Finance Expert Commends CBN Over Forex Stability Target
The Managing Director,
APT Securities and Funds Ltd, Malam Garba Kurfi, says the Central Bank of Nigeria’s (CBN’s) pronouncement on foreign exchange stability would boost the confidence of foreign investors in the nation’s bourse.
Kurfi said in Lagos that the CBN Governor, Mr Godwin Emefiele’s move to pursue foreign exchange stability would increase the participation of foreign investors in the nation’s stock market.
He said that the market would experience increased activity because foreign investors were the major players.
According to him, the pronouncement will make foreign investors to increase their stake in the nation’s stock market.
He, however, cautioned Emefiele on interest rate reduction to avoid the devaluation of Naira, as banks would engage in “dollarisation,” to increase their profit margin.
Kurfi said that foreign exchange stability would be difficult to achieve with low interest rates.
Emefiele had on June 5, unveiled his blueprint for the banking sector and the economy, and promised a gradual reduction of interest rates on lending and foreign exchange stability.
Emefiele said the CBN would act as a financial catalyst by targeting predetermined sectors that could create jobs on a mass scale and reducing the country’s import bills.
The Nigerian Stock Exchange (NSE’s) All-Share Index last week improved by 54.71 points or 0.13 per cent, to close at 41,529.11 points.
The Market Capitalisation also appreciated by N18 billion, to close at N13.713 trillion.
At the end of the week under review, investors’ bought 1.88 billion shares worth N32.90 billion in 28,408 deals, compared with 1.90 billion shares valued N34.64 billion traded in 20,452 deals in the preceding week.
The financial services sector led the activity chart with 1.38 billion shares worth N15.55 billion, accounted for in 14,386 deals.
The conglomerates sector followed with 162.50 million shares valued N1.54 billion, traded in 1,979 deals.
The third place was occupied by the industrial goods sector with 100.03 million shares worth N2.11 billion in 2,007 deals.
An analysis of the gainers’ chart showed that Ashaka Cement led in percentage terms, growing by 21.76 per cent or N4.89, to close at N27.36 per share.
Forte Oil followed with 16.89 per cent or N36.13, to close at N250.01, while Transcorp gained 12.56 per cent or 49k, to close at N4.39 per share.
On the other hand, Caverton topped the losers’ chart, shedding 18.48 per cent or N1, to close at N4.41 per share.
Berger Paints dropped 13.90 per cent or N1.39, to close at N8.61, while Julius Berger declined by 10.58 per cent or N7.99, to close at N67.50 per share.