NGX absorbs FGN bonds as capitalisation plunges by N2 billion

The Nigerian Exchange Limited (NGX) has announced that the August 2021 issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on its platform yesterday.

The bond is an investment instrument targeted at retail investors with a minimum subscription of N5,000. It encourages savings and allows investors to earn more income compared to traditional savings accounts, with interest paid every quarter and the principal paid at maturity.

In a notification on the NGX website, the amount issued under the 8.864 per cent FGNSB August 2023 was 204,965,000 at 204,965 units with a two-year tenor and maturity date on August 11, 2023.

It explained that the amount issued under FGNSB August 2024 was 603,248,000 at 603,248 units with a three-year tenure and maturity date at August 11 2024. The coupon payment for the issued FGN savings bond will be 11 November, 11 February, 11 May and 11 August.

Meanwhile, the bears upstaged the bulls yesterday on the NGX, as sell-off in most blue-chip stocks, dragged market capitalisation by N2 billion.

Specifically, the All-Share Index (ASI) declined by 4.69 absolute points, representing a drop of 0.01 per cent, to close at 39,545.67 points. Similarly, the overall market capitalisation value shed N2 billion to close at N20.604 trillion.

The market loss was driven by price depreciation in large and medium capitalised stocks amongst which are; Guaranty Trust Bank Holding Company (GTCO), SCOA Nigeria, Caverton Offshore Support Group, Access Bank and Ecobank Transnational Incorporated (ETI).

However, investor sentiment as measured by market breadth closed positive, as 19 stocks advanced while 17 declined. Pharma Deko recorded the highest price gain of 10 per cent to close at N1.43 kobo. BOC Gases followed with a gain 9.78 per cent to close at N10.10 kobo while Honeywell Flour Mills went up by 9.72 per cent to close at N2.71 kobo.

Courteville Business Solutions rose by eight per cent to close at 27 kobo, while Associated Bus Company gained 6.06 per cent to close at 35 kobo. On the other hand, SCOA Nigeria led the losers’ chart by 9.66 per cent to close at N1.59, per share.

Prestige Assurance followed with a decline of 8.33 per cent to close at 44 kobo, while Regency Alliance Insurance lost 6.98 per cent to close at 40 kobo, per share.

Mutual Benefits Assurance lost 5.71 per cent to close at 33 kobo while Caverton Offshore Support Group shed 5.49 per cent to close at N1.72 kobo.

The total volume of trades increased by 19.2 per cent to 132.077 million units, valued at N2.674 billion, and exchanged in 3,307 deals.

Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 14.145 million shares valued at N13.529 million.

Chams followed with 14.068 million shares worth N2.914 million, while Zenith Bank traded 8.515 million shares valued at N206.229 million.

GTCO traded 6.222 million shares valued at N174.960 million, while Oando transacted 5.383 million shares worth N26.778 million.