Equities investors who patronize the Nigerian Exchange Limited continue to count their losses as the market sustained its downward trend on Tuesday.
The day’s trading session ended on a negative note as losses in OANDO (-10.0%), TRANSPOWER (-10.0%) and UBA (-5.6%) drove the All-Share Index lower by 0.30% to 114,910.16 points, lower than 115,258.77 points recorded on Monday.
Accordingly, the market capitalisation dropped to N72.68 trillion translating to a 20 basis point decline, wiping out N183.31 billion from investors portfolio. Following the latest loss, the Month-to-Date and Year-to-Date returns settled at +2.8% and +11.6%, respectively.
Meanwhile, the decline in market capitalisation came despite the listing of 6.66 billion ordinary shares of Sterling Holdco following the successful outing of its 1-for-4 Rights Issue priced at N4.00. The new listing puts the company’s total shares at 52.12 billion, up from 45.46 billion.
Analysis of trading activities shows that total volume of trades rose by 9.1% to 787.31 million units, valued at N25.67 billion, and exchanged in 23,170 deals.
ZENITHBANK was the most traded stock by volume at 96.23 million units, while GTCO was the most traded stock by value at N6.24 billion.
On sectors, the Oil & Gas (-1.3%), Consumer Goods (-0.5%) and Banking (-0.2%) indices declined while the Insurance (+0.4%) and Industrial Goods (+0.2%) indices advanced.
As measured by market breadth, market sentiment was negative (0.9x), as 29 tickers lost relative to 33 gainers.
TRANSPOWER (-10.0%) and OANDO (-10.0%) led the losers, while MBENEFIT (+10.0%) and CILEASING (+10.0%) recorded the most significant gains of the day.
NASD OTC Exchange
Conversely, the unlisted equities market operated by the NASD OTC Exchange Limited closed bullish as the market benchmark index, the NASD Securities Index rose by 1.00% to close at 3,359.50 points, up from 3,326.33 points recorded on Monday.
A total of 639,427 units of unlisted equities, valued at N23.55 million were exchanged in 35 deals. While four stocks recorded gains against zero losers.
MONEY MARKET & FIXED INCOME
The overnight lending rate contracted by 3bps to 26.9% following inflows from OMO maturities (N975.88 billion).
Proceedings in the Treasury bill secondary market were calm with a bullish undertone, as the average yield contracted by 1bp to 20.6%. Across the curve, the average yield contracted at the short (-1bp), mid (-1bp) and long (-1bp) segments, driven by the demand for the 86DTM (-1bp), 177DTM (-1bp) and 352DTM (-2bps) bills, respectively. Conversely, the average yield expanded by 88bps to 26.9% in the OMO segment.
The FGN bond secondary market traded on a quiet note, as the average yield remained unchanged at 18.5%.
DMO offers N50bn green bond for subscription at N1, 000 per unit
Also, the Debt Management Office has offered green bonds valued at N50 billion for subscription at N1, 000 per unit.
The DMO announced the offer in a statement on Tuesday in Abuja.
Green bonds are fixed-income, liquid financial instruments used to raise funds dedicated to climate mitigation, adaptation, and other environment-friendly projects.
The agency said the latest offer is a five-year green bond due in 2030, at interest rates ranging between 18.75 percent and 19.25 percent per annum.
The debt office said the offer, which opened June 16, will close on June 18, while the settlement date is on June 23.
“It is offered at N1, 000 per unit, subject to a minimum subscription of N10 billion and in multiples of N1 million thereafter.
“Coupon payment is made half yearly while bullet repayment (principal sum) is on maturity,” the DMO said.
The DMO added that proceeds would be used solely to fund green projects as well as assets and expenditure which aligned with the sustainable bond framework.
The debt office further said the green bond is qualified as securities in which trustees could invest under the Trustees Investment Act.
“It qualifies as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among others.
“It is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited,” it added.
The DMO urged interested investors to contact the financial advisors, Chapel Hills Advisory Limited and Stanbic IBTC Capital Limited.