By Babajide Komolafe & Chinedu Ibeabuchi

LAGOS — Foreign exchange demand fell by 71 per cent, Wednesday, to $43.2 billion at the auction conducted by the Central Bank of Nigeria (CBN).

Meanwhile, the CBN will tomorrow inject liquidity of N159 billion into the system through repayment of matured treasury bills. Data from Financial Market Dealers Association of Nigeria (FMDA) showed that the apex bank will tomorrow repay N35.29 billion worth of matured primary market treasury bills, and N123.99 billion worth of secondary market bills.

Result of the Wholesale Dutch Auction System (WDAS) conducted, yesterday, showed that demand for foreign exchange fell from $150 million on Monday to $43.2 million, implying 71 per cent decline. The decline, however, did not impact on the value of the naira as the official exchange rate and the interbank foreign exchange rate remained stable at N155.7 and N156.5 per dollar respectively.

Cumulatively, the CBN had sold $193.2 million in 2013, while the official exchange rate remained stable at N155.7.

At the interbank money market, interest rates rose across all the tenors, following decline in idle cash (excess liquidity) in the system from N190 billion on Monday to N152 billion. Interest rate on Call/Overnight borrowing rose by 29 basis points (bpt) to 12.5, 7Days rose by 25 bpts to 13 while 30Days rose by 42 bpts to 14 per cent.

Meanwhile, the value of equities listed on the Nigerian Stock Exchange, NSE, yesterday, dropped by N42.41 billion occasioned by investors taking profit from the capital market which had been witnessing consistent appreciation in recent time.

Specifically, the market capitalisation which opened at N9.297 trillion, lost 0.46 per cent, to close at N9.255 trillion.

Another market indicator, the All-Share Index, also depreciated by 0.46 per cent or 132.69 points to close at 29,956 points from 29,089.52 points.

Thirty one equities lost in share price value compared to twenty equities that gained.

DN Meyer Plc recorded the highest share price loss, dipping by 10 per cent to close at N1.26 per share from N1.40. This was followed by Presco Plc that lost 8.48 per cent of its share price value to close at N20.50 per share, while Fidson Healthcare Plc dropped by 6.72 per cent to close at N1.11 per share.

On the other hand, United Bank for Africa Plc topped the gainers’ chart, rising by 9.92 per cent to close at N5.65 per share from N5.14. This was followed by Ashakem Cement Plc that rose by 9.01 per cent to close at N20.69 per share, and Forte Oil Plc appreciated by 4,.94 per cent to close at N8.93 per share.

Similarly, the volume of equity transactions fell by 53.7 per cent, recording 378.26 million shares valued at N3.15 billion exchanged in 4,340 deals as against 398.82 million shares valued at N2.77 billion exchanged in 4,340 deals recorded the previous trading day.