Value of govt bonds drops by 60.2%

Nigeria Stock Exchange

Nigeria Stock Exchange

08 June 2015, Lagos – The value of government’s traded bonds at the secondary market on the Nigerian Stock Exchange, NSE declined by 60.2 per cent, indicating lower patronage when compared to the equity transactions.

Specifically, a total of 14,817 units of Federal Government Bonds valued at N17.586 million were traded last week in 5 deals compared with a total of 64,465 units of Federal and State Government Bonds valued at N69.372 million traded in 7 deals penultimate week.

The NSE All-Share Index and market capitalization depreciated by 1.88 per cent and 1.44 per cent to close last Friday at 33,664.91 points and N11.491 trillion respectively.

Similarly, four indices finished lower during the week under review, while NSE Consumer Goods, NSE Lotus II, NSE Industrial Goods Indices closed higher by 0.08 per cent , 0.37 per cent , and 0.16 per cent respectively. However, the NSE ASeM index closed flat.

A turnover of 1.221 billion shares worth N16.964 billion in 19,847 deals were traded last week by investors on the floor of the exchange in contrast to a total of 1.799 billion shares valued at N22.105 billion that exchanged hands penultimate week in 17,337 deals.

The Financial Services Industry (measured by volume) led the activity chart with 935.233 million shares valued at N9.258 billion traded in 11,066 deals; thus contributing 76.58 per cent and 54.58 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with a turnover of 77.298 million shares worth N5.048 billion in 3,144 deals. The third place was occupied by the Conglomerates Industry with 47.348 million shares worth N228.761 million in 1,182 deals.

Trading in the Top Three Equities namely – Zenith International Bank Plc, Diamond Bank Plc and United Bank for Africa Plc., (measured by volume) accounted for 357.004 million shares worth N4.033 billion in 3,021 deals, contributing 29.23% and 23.77 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 8,966 units of Exchange Traded Products (ETPs) valued at N5.556 million executed in 32 deals compared with a total of 3,474 units valued at N1.003 million transacted last week in 19 deals.

Supplementary listing equity
A total of 2,949,933,156 ordinary shares of 50 kobo each at N16.50 per share belonging to Oando Plc were admitted to trading on 4th of June 2015. This arose from a rights issue of the company on the basis of one (1) new ordinary share for every three(3) ordinary shares held, thus bringing the total outstanding shares of the company to 12,034,618,894 units.

Also, additional warehoused ordinary shares of 482,754 units of 50 kobo each of Pharma Deko Plc were admitted to trading on the 4th of June 2015, bringing the total outstanding shares of the company to 216,820,448 units.
*Peter Egwuatu – Vanguard

About the Author