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DMO lists N250b sukuk on NGX as index dips further by N110 billion

By Helen Oji
06 July 2022   |   2:06 am
The Debt Management Office (DMO) has listed the N250 billion, 10-year 13 per cent Ijarah Sovereign Sukuk due 2031, on Nigerian Exchange Limited (NGX).

Nigerian Exchange Limited (NGX). Photo/FACEBOOK/ ngxgroup

The Debt Management Office (DMO) has listed the N250 billion, 10-year 13 per cent Ijarah Sovereign Sukuk due 2031, on Nigerian Exchange Limited (NGX).

The Ijarah Sovereign Sukuk was successfully listed on NGX, having fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria, which stipulated that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets.

According to the exchange, the listing will facilitate its trading and provide liquidity to investors which would further deepen the Nigerian capital market.

The Ijarah Sovereign Sukuk, which was issued on December 29, 2021, would finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.

The proceeds of the sukuk will be dedicated to road projects and will enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria.

Recall that the DMO listed the N162.6 billion seven-year sukuk with a rental rate of 11.20 per cent on the exchange to be used for financing the rehabilitation and construction of key road projects across the 36 states and the FCT in 2021.

NGX added that the issuance and subsequent listing of the sovereign sukuk on the NGX platform underscores the Federal Government’s drive to develop the critical infrastructure needed to unlock economic growth, by leveraging innovative and cost-effective financing structures.

Meanwhile, bearish sentiments persisted in the equities market yesterday, following profit taking in BUA Foods and 15 others, as market capitalisation depreciated further by N110 billion.

Yesterday, the All Share Index (ASI) decreased by 204.95 absolute points, representing a dip of 0.40 per cent to close at 51,586.50 points. Similarly, the market capitalisation lost N110 billion to close at N27.811 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; BUA Foods, Chemical & Allied Products (CAP), NASCON Allied Industries, FBN Holdings (FBNH) and International Breweries.

On market outlook, GTI Securities Limited said, “Equities market closed transaction for today negative as bargain hunting continues with prominent losses witnessed in all the sectors except in the industrial. We expect cautious trading to continue in the week.”

As measured by market breadth, market sentiment was positive, as 23 stocks gained relative to 16 losers. Red Star Express recorded the highest price gain of 10 per cent to close at N2.75 kobo. John Holt followed with a gain 9.76 per cent to close at 90 kobo, while UACN Property Development Company (UPDC) appreciated by 9.73 per cent to close at N1.24 kobo.

Unity Bank went up by 9.52 per cent to close at 46 kobo, while Academy Press appreciated by 8.33 per cent to close at N1.43 kobo.

On the other hand, International Breweries led the losers’ chart by 9.52 per cent to close at N5.70 kobo Consolidated Hallmark Insurance followed with a decline of 8.00 per cent to close at 69 kobo. Jaiz Bank went down by 6.67 to close at 84 kobo.

NASCON lost 6.38 per cent to close at N11. BUA Foods and FCMB Group shed 6.36 per cent each to close at N51.50 kobo and N3.24 kobo.

Also, the total volume of trades increased by 20.85 per cent to 234.605 million units, valued at N2.570 billion, and exchanged in 4,646 deals. Transactions in the shares of CAP topped the activity chart with 29.323 million shares valued at N499.947 million.

Guaranty Trust Holding Company (GTCO) followed with 29.017 million shares worth N592.438 million, while United Bank for Africa (UBA) traded 25.404 million shares valued at N189.266 million.

Transnational Corporation of Nigeria (Transcorp) traded 23.867 million shares valued at N30.141 million, while Sterling Bank transacted 16.440 million shares worth N24.426 million.

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