Government, corporates raise N4.58 trillion from fixed income market

…As capitalisation dips further by N22 billion amid sell-off

Despite the weak macroeconomic situation, the Federal Government and corporate organisations in the country have so far raised N4.58 trillion from the capital market via the fixed income segment between January to June 3, 2021.

Data obtained from NGX’s X-Compliance Report on new listings in the fixed income market in 2021, revealed that the total number of issues within the period under review stood at 41 with 6.812 trillion units admitted to date.

The data further revealed that the Federal Government was the most active player in the fixed income segment while the value or market capitalisation of the new listings to date (June 3, 2021) stands at N4.58 trillion, from 12 issuers.

According to NGX, issuers will continue to express excitement and satisfaction over the ability to access capital from the market and list the securities on NGX so as to provide liquidity for investors.

Some of the issuers that have listed on NGX in the period under review include; NOVAMBL Investments SPV Plc, Federal Government of Nigeria, Mecure Industries Funding SPV Plc, CardinalStone Financing SPV Plc, Fidelity Bank Plc, FBNQuest Merchant Bank SPV Funding Plc, BUA Cement Plc, Etranzact International Plc, Kogi State Government, TSL SPV Plc, Lagos State Government and Flour Mills of Nigeria Plc.

Divisional Head, Listings Business, NGX, Olumide Bolumole said the exchange continues to provide issuers with a platform that allows them to meet their strategic business objectives and it is the Exchange’s delight to see issuers take full advantage of our products and services to support their growth story.

Meanwhile, sell-off persisted on the NGX yesterday, as more blue-chip stocks suffered price depreciation, causing market capitalisation to decline further by N22 billion.

At the close of transactions yesterday, the All-Share Index (ASI) declined by 42.61 absolute points, representing 0.11 per cent loss to close at 37,804.46 points while market capitalisation value lost N22 billion to close at N19.703 trillion.

The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Zenith Bank, Access Bank. E-Tranzact International, University Press and Ecobank Transnational Incorporated (ETI).

Analysts at Afrinvest Limited said: “In the next trading session, we expect the domestic bourse to extend bearish performance in the absence of any positive catalyst.”

On the price movement chart, 11 stocks advanced while 23 others declined. FTN Cocoa Processors recorded the highest price gain of 10 per cent to close at 33 kobo while Ikeja Hotel followed, adding 9.89 per cent to close at N1.00 kobo. Cornerstone Insurance went up by 9.80 per cent to close at 56 kobo.

Linkage Assurance rose by 9.09 per cent to close at 60 kobo, while Mutual Benefits Assurance gained 5.26 per cent to close at 40 kobo, per share.

On the other hand, Royal Exchange led the losers’ chart with 10 per cent to close at 63 kobo while Japaul Gold and Ventures followed with a decline of 9.80 per cent to close at 46 kobo. University Press lost 9.52 per cent to close at N1.52.

Consolidated Hallmark Insurance lost 9.38 per cent to close at 58 kobo, while E-Tranzact International shed 8.44 per cent to close at N2.06, per share.

The total volume of trades fell by 4.5 per cent to 208.356 million units, valued at N1.603 billion, and exchanged in 3,365 deals. Transactions in the shares of Zenith Bank topped the activity chart with 33.682 million shares valued at N795.027 million. E-Tranzact International followed with 20.950 million shares worth N43.158 million, while Fidelity Bank traded 13.680 million shares valued at N31.383 million.

Royal Exchange-traded 13.117 million shares valued at N8.278 million, while Japaul Gold and Ventures transacted 13.002 million shares worth N6.126 million.