Thursday, 1st June 2023

Total FGN savings bond allotment hits N5.06 billion in five months

By Helen Oji
26 May 2023   |   3:05 am
The Nigerian Exchange Limited (NGX) has revealed that the total allotments for FGN Savings Bonds have risen to N5.06 billion in the first five months of 2023.

[FILES] Nigerian Exchange Limited (NGX). Photo/FACEBOOK/ ngxgroup

•Capitalisation dips by N58b, 23 stocks record losses

The Nigerian Exchange Limited (NGX) has revealed that the total allotments for FGN Savings Bonds have risen to N5.06 billion in the first five months of 2023.

Divisional Head, Capital Markets at NGX, Jude Chiemeka, revealed this during the NGX Savings Bond webinar 2023 organised by the Exchange in collaboration with Optimus by Afrinvest, a foremost fintech platform and supported by the Debt Management Office (DMO) as well as CSL Stockbrokers.

Chiemeka noted that the webinar was aimed at creating more awareness of the benefits of FGN Savings Bonds to the investing public, especially the retail segment of the market as this would encourage participation in investments and further enhance financial inclusion in the country.

According to him, the retail savings bond product was introduced by the DMO on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians.

He disclosed that activities in the FGN Savings bonds market have remained on the upward trend in the current year (from January to May) with allotments at an average of N1.01 billion, adding that opportunity still exists for further participation by the investing public.

“As inflation remains unrelentingly on the upward trajectory (Now at 22.22 per cent as at May) the yields on FGN Savings Bond which are in double digits offer an opportunity for investors to taper negative real interest rates”, he said.

He said the exchange remains keen on providing an efficient, liquid and transparent market for investors and businesses in Africa to enable them to access capital and build wealth while collaborating with all market stakeholders to grow the market.

Director-General, DMO, Patience Oniha, represented by the Director, Market Development Department, DMO, Monday Usiade, revealed that FG had successfully raised N50.2 billion from about 35,000 subscribers so far.

Oniha said that the DMO uses the FGN bond benchmark yield curve to price the savings bond to ensure that retail investors earn comparable returns while commending the NGX on its role in enlightening retail investors on the opportunity that exists in the fixed-income securities market, especially concerning the FGN savings bond.

Meanwhile trading activities on the floor of the Nigerian Exchange halted gains to close on a downturn yesterday market capitalisation declined by N58 billion.

At the close of transactions yesterday, market capitalisation of listed equities declined by 0.2 per cent to N28.761 trillion from N28.819 trillion traded the previous day while the All-share index also depreciated by 106.00 basis points to 52821.6 points from 52927.60 points traded the previous day.

On the price movement chart, FTNcocoa led gainers table, adding 8.77 per cent to close at 62 kobo. Tantalizer followed with a gain of 8.33 per cent to close at 62 kobo, Wapic Insurance added 7.14 per cent to close at 45 kobo, total added 8.87 per cent to close at N249. RTBriscoe increased by 5.88 per cent to close at 36 kobo.

Conoil Plc topped the losers chart, declining by 9.92 per cent to close at N43.60 kobo. Unilever Nigeria Plc trailed with a loss of 8.28 per cent to close at N14.40 PZ Cusson fell by 6.11 per cent to close at N16.90 kobo, Japaul Gold was down by 5.71 per cent to close at 33 kobo.

Investors traded 377.136 million shares valued at N9.178 billion in 5879 deals against 455.179 million shares valued at N7.833 billion in 6635 deals.

United Bank for Africa led the activity chart with 86.17 million shares valued at N745.864 million, AccessCorp followed with an account of 67.392 million shares worth N737.191 million.

Zenith Bank traded 39.403 million shares worth N1.052 billion, GTCO Plc traded 30.988 million shares valued at N835.974 million while Geregu Power exchanged 13.108 million shares valued at N3.916 billion.