Markets mark time, NSE rises 0.02 percent

Nigerian markets closed flat today, as the NSE - ASI barely stayed in the green rising by 7.81 points to close at 38,972.56 points.

The naira dipped at the interbank market today, with the counter currently offered at N163.5 according to FMDQ data.

The Central Bank of Nigeria (CBN), sold $599.904 million of the $600 million offered at the currency auction yesterday at a marginal rate of N155.75/ $.

The CBN still has $41.7 billion in FX reserves (Feb.14), suitable for 9 months of import cover. However for this market to rally, the hemorrhaging of reserves has to stop, and investors need to see a credible plan from the central bank on how it plans to stop further naira weakness.

A shift in the naira peg band upwards to N160/ dollar plus or minus 3 percent may also not be out of order.