Market cap up by N542bn as index heavy weights, MTN Nigeria, Zenith Bank, others rebound



Uba Group

The Lagos bourse extended gains for the second consecutive session on Thursday as the benchmark Index ended 1.55 percent stronger to close at 65,263.06 points.

The performance was primarily driven by rebounds in index heavyweight, MTNN (+6.46%) alongside Tier-1 banking names ZENITHBANK (+0.30%) and GTCO (+2.25%).

Consequently, the ASI year-to-date (YTD) increased to 27.34 percent, while market capitalization increased by N541.84bn to close at N35.52trn.

Analysis of Thursday’s market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 19.14 percent.

A total of 445.28m shares valued at N5.09bn were exchanged in 7,095 deals.

STERLINGNG (+10.00%) led the volume chart with 69.45m units traded while ACCESSCORP (+5.44%) led the value chart in deals worth N568.98m.

Market breadth closed positive at a 6.67-to-1 ratio with advancing issues outnumbering declining ones. NB (+10.00%) led thirty-nine (39) others on the leader’s table while ETERNA (-9.83%) topped five (5) others on the laggard’s log.

Meanwhile, the Nigerian Exchange Limited on Thursday announced the listing of the Federal Government’s N130 billion Sovereign Sukuk through the Debt Management Office on its platform.

The 10-year 15.64 percent Ijara Sukuk due 2032 was listed on NGX on Thursday.

According to the DMO, the Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion, garnered immense interest from investors with a remarkable subscription level of N165.25 billion.

The subscription represented over 165 percent of the amount offered. In a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, N130 billion was allocated.

The total Sovereign Sukuk issued from 2017 till date currently stands at N742.557 billion and the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country.

The DMO said in a statement, “The listing of the N130 billion Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery.”

The Divisional Head of Capital Markets at NGX, Jude Chiemeka, commended the DMO under the leadership of Director-General, Patience Oniha, for their effective implementation and commitment to following due process in infrastructure financing.

He emphasized the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.

His words: “This listing demonstrates the Federal Government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures. NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth. The listing of the Sovereign Sukuk on the Exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market.”