CBN Fines Standard Chartered Bank N2bn for FX Infraction

market, the spot rate of the naira closed at N307.76 to the dollar yesterday, just as it went for N385 to the dollar on the BDC segment.

In a related development, the stock market reacted negatively to the news of Donald Trump’s election as US president. Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) fell by 0.72 per cent to 26,173.69, while market capitalisation shed N65.6 billion to close at N9.0 trillion.

Although the market has been bearish in the past six trading days, operators said the surprising victory of Trump must have further dampened investors’ confidence.

“We acknowledge the possibility that the surprise victory of Trump in the US presidential election could potentially further dampen sentiments, as investors weigh the potential impact on the country given the close trade relationship between Nigeria and the US,” analysts at Meristem Securities Limited said.

The global markets were calm as the S&P 500, Dow Jones, and Nasdaq stock indexes in the US were little changed after the first hour of trading.

The pre-open future markets forecast dramatic sell-offs when Trump’s lead became clear overnight.

Share traders had expected Hillary Clinton to beat Mr. Trump to become the next US president on the back of polling forecasts.

UK and European stock markets have made early losses, with money flowing into safe haven stocks, gold and currencies including the yen.

The UK’s FTSE 100 index initially dropped two per cent before recovering its losses to show a gain of 0.8 per cent in afternoon trading.

France’s Cac index and Germany’s Dax were back in positive territory after erasing losses of more than two per cent.

Culled from Thisday

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