NSE records N5.4 billion turnover in one week

Forte Oil floats N9b five-year fixed rate bond
The Nigerian Stock Exchange (NSE), a fully integrated exchange that offers a comprehensive range of products, which include shares, last week, recoded a turnover of 823.547 million shares worth N5.444 billion in 11,634 deals.

The volume of shares traded, was, however, lower than a total of 2.847 billion units, valued at N7.420 billion that changed hands in 16,065 deals during the preceding week.

Last week, the financial services industry (measured by volume) led the activity chart with 616.999 million shares valued at N2.667 billion traded in 6,142 deals; thus contributing 74.92 per cent and 49.00 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 47.741 million shares worth N43.735 million in 510 deals.

The consumer goods industry ranked third with a turnover of 42.674 million shares worth N1.735 billion in 2,112 deals.

Trading in the top three equities namely – Standard Alliance Insurance Plc, Diamond Bank Plc and FBN Holdings Plc (measured by volume) accounted for 219.392 million shares worth N288.220 million in 1,026 deals, contributing 26.64 per cent and 5.29 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 60 units of Exchange Traded Products (ETPs), which are derivatively priced security, valued at N537.00 executed in 11 deals, compared with a total of 5,080 units valued at N62,550.75 transacted last week in 17 deals.

Some 6,871 units of Federal Government Bonds, usually used by government to support spending, issued with a promise to pay periodic interest and repay the total value at a maturity date, worth N5.990 million were traded in eight deals compared to 73,694 units valued at N80.177 million transacted last week in nine deals.

The NSE All-share index and market capitalisation depreciated by 2.42 per cent to close the week at 25,537.54 and N8.791 trillion respectively.

Similarly, all other indices finished lower during the week with the exception of the NSE Insurance Index that appreciated by 0.49 per cent while the NSE ASeM Index closed flat

Only 10 equities appreciated in price, 48 depreciated, while 123 remained unchanged lower than 127 equities recorded in the previous week.

Meanwhile, Forte Oil Plc, a public liability company listed on the NSE and integrated energy service provider, successfully closed its N9 billion series one debt issue.

This is the first series of its proposed N50 billion-bond issuance programme. The Funds raised will be used to refinance existing short-term commercial bank loan obligations and to finance its retail outlets expansion.

Speaking at the completion board meeting, the Group Chief Executive Officer, Akin Akinfemiwa, said the successful raising of the initial capital, which was fully underwritten showed the level of confidence the investing public has in the firm.

“This bond programme being the first in the downstream sector is testament to Forte’s position within the downstream sector, and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate.”

The Group Executive Director, Finance and Risk, Julius Omodayo-Owotuga, explained that the bond raising provides the necessary liquidity for the firm to realise its growth strategies to position it for the future.

“The pricing of this debt instrument demonstrates the markets’ belief in us and the pricing would help reduce our borrowing cost and increase profitability in the short and long term.”