Govt, corporate issuers lift NGX bonds by N2.5 trillion in H1

Indices plummet by N19b amid losses in Presco, others
The Federal Government and corporate issuers’ confidence in the capital market have continued to grow as bond issuances in the first half (H1) of 2022 on Nigerian Exchange Limited (NGX) grew to over N2.5 trillion.

This is despite uncertainty surrounding access to fresh capital for expansion as well as infrastructural projects. Also, the Eurobonds listings on NGX grew to $4 billion, while equity listings rose by N1.08 trillion despite the weak macroeconomic environment.

Analysing the exchange’s listing H1’22 report (January – June), the Federal Government dominated issuances, while corporate organisations made significant inroads during the period.

For instance, the NGX started the year with the landmark listing of BUA Foods’ 18 billion shares at N40 per share, adding N720 billion to the NGX market capitalisation. Abbey Mortgage Bank also listed its right issue of about N3.028 billion, while Access Holdings, following its merger and acquisition, listed new shares valued at N353.675 billion.

Furthermore, NPF Microfinance Bank listed 3,107,001,335 ordinary shares of 50 kobo each arising from the offer of 2,286,657,766 ordinary shares of 50 kobo each at N1.50 per share via a Rights Issue on the basis of one new ordinary share for every one ordinary share held and public offer of 713,342,234 ordinary shares at N1.50 per share made by NPF Microfinance Bank Plc amounting N4.66 billion.

These issuances listed across both the bonds and equities markets are essential in deepening the market, enhancing tradability, increasing access to capital to fund growth returns. Hence, the equities sector of the NGX closed on a downward note yesterday, as market capitalisation depreciated by N19 billion..

Specifically, market capitalisation of listed equities declined by 0.07 per cent to N26.768 trillion from N26.787 trillion reported the previous day.

The NGX All Share Index also depreciated by 34.64 basis points to 49629.43 points from 49664.07 points recorded on Friday.

Investors traded 210.835 million shares valued at N2.187 million in 4122 deals against 750.285 million shares worth N5.307 billion exchanged hands the previous day in 4076 deals.

An analysis of the transactions showed that Presco Plc topped the losers chart, declining by 9.97 per cent to close at N142.60 kobo. Multiverse trailed with a loss of 7.79 per cent to close at N2.25 kobo. Ikeja Hotel was down by 5.51 per cent to close at N1.20 kobo. Dangote Sugar dipped by 4.19 per cent to close at N16. Jaiz Bank also fell by 3.30 per cent to close at 88 kobo.

Neimeth International Pharmaceutical led the gainers chart, adding 9.29 per cent to close at N1.53 kobo while Unity Bank followed with 4.65 per cent to close at 45 kobo. FCMB group appreciated by 4.18 per cent to close at N3.49 kobo. Zenith Bank increased by 2.12 per cent to close at N21.70, kobo. Transnational Corporation of Nigeria added 93 per cent to close at N1.08 kobo.

The result further showed that E-tranzact was the most active stock for the day, exchanging 52.551 million shares valued at N119.835 million, FBNHoldings followed with an account of 23.082 million shares valued at N249.782 million.

United Bank for Africa traded 21.896 million shares cost N153.480 million, GTCO Plc exchanged 15.517 million shares cost N315.918 million, Transcorps sold a total of 12.741 million shares cost N13.710 million.