CBN, Banks Defy Strike, Sell $69.3m
NSE gives reasons for trading
By Ayodele Aminu, Uche Obike in Lagos and Kunle Aderinokun in Abuja
The Central Bank of Nigeria (CBN) as well as banks have defied the on-going nationwide strike called by the Nigeria Labour Congress (NLC) to protest against the increase in the pump price of fuel by trading in foreign exchange. Also, the Nigerian Stock Exchange (NSE) yesterday in Lagos explained that it is not opposing the on-going industrial action by allowing trade in stocks on its floor.
The CBN sold a total of $69.32 million to 31 banks, going by the results of the 184th edition of the Dutch Auction System (DAS) made available to THISDAY in Lagos and Abuja yesterday.
Both the amount of foreign exchange sold and the number of banks that traded were, however, a far cry from the $171 million purchased by 65 banks at the last trading day (Tuesday), indicating that the strike may have reduced foreign exchange demands by banks on behalf of their customers.
Given this scenario, out of the $100 million offered to banks by the CBN, total demand stood at $72.68 million, indicating a 62.4 per cent or $120.9 million decrease over the $193.6 million demanded the previous trading day.
Also, the $69.32 million sold by the CBN to banks indicates a decline of $101.7 million or 59.6 percent over the $171 million sold in the previous trading session.
Further analysis of yesterday's transactions, however, shows that the highest bid rate remained unchanged at N134.50 per dollar, but the lowest bid rate fell from N132.75 to N131 per dollar.
Cumulatively, the $69.32 million sold to banks by CBN yesterday, brings to $21.387 billion the total amount of foreign exchange that has been sold to banks by the CBN since the debut of the DAS July 22, 2002.
Similarly, the $100 million offered to banks on Monday brings the total amount of foreign exchange that has been offered by the CBN since the debut of DAS to $16.987 billion.
At the parallel market, the average naira exchange rate remained at N138.00 per dollar, while the export proceeds market average rate was N133.60 at the close of business yesterday.
Also speaking yesterday in Lagos, the Assistant Director General of the Nigerian Stock Exchange, Mr. Lance Musa Elakama, said the stock market was open on Wednesday and Thursday for transactions not in defiance of the NLC call for strike.
He said "our stock market cannot close for any reason. Our market is not a labour market. People are watching our market from all parts of the world. So, we cannot close the market. The stockbrokers are trading right now, the market is vibrant."
On whether the brokers and the NSE could sustain the market's current tempo, Elakama expressed optimism.
NSE's Director General Dr. (Mrs.) Ndi Okereke-Onyiuke had on Tuesday, before she left for the United States of America for the G8 Summit said the stock market will be open throughout the period of strike.
"The NSE is not a politician and this trading floor is open just as the trading engine is open throughout the whole world. Even, if there are only two stockbrokers here to trade throughout the duration of whatever is happening, this market is open," she said.
But market turnover dropped from the previous day's 48.729 million ordinary shares worth N4.207 billion traded in 2,295 deals to 16.9 million ordinary shares valued at N49.6 million that were exchanged in 1,651 deals.
The major driver of the previous day's transactions was Nigerian Breweries Plc which recorded N3.8 billion worth of transactions.
Meanwhile, analysis of yesterday's equity transactions revealed that Texaco Nigeria Plc topped the price gainers' chart with N12.47 gain to close at N261.90 per share. The other four top price gainers included Mobil Oil Nigeria Plc (N9.07), Total Nigeria Plc (N7.70), Conoil Nigeria Plc (N5.45) and Guinness Nigeria Plc (N3.50). However, Nestle Nigeria Plc emerged the highest price loser of N6.74 to close at N17.70 per share. Other top price losers included Ashaka Cement Plc (N1.01), West African Portland Company Plc (89 kobo), United Bank for Africa Plc (59 kobo) and Oando Plc (60 kobo).
The NSE also released Alumaco Plc's audited financial results for the year ended December 31, 2003 that showed a turnover of N467.8 million, as against N339.6 million in 2002, while profit after tax and extra-ordinary items stood at N17.2 million compared with N 16.9 million in 2002.
The directors are recommending a dividend of N0.05 per share. The closure of register of members was June 9, 2004 while payment date would be announced later. Also, the Exchange announced the company's unaudited financial results for the first quarter ended March 31, 2004 which showed a turnover of N140.9 million, as against N96.2 million in the comparable period in 2003, while profit after tax stood at N6.6 million compared with N3.6 million in 2003.
|
