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Trading on Federal Government’s bonds drops by 79%

By  Michael  Eboh
INVESTORS shied away from Federal Government Bonds last week, as the volume and value of bonds traded in the Over-the-Counter (OTC) Bond market dropped by 78.85 per cent and 79.06 per cent respectively.

In particular, the volume of bonds recorded in the week under review stood at 15.56 million compared to a turnover of 73.56 million units recorded in the previous week, while the value of bond traded stood at N16.72 billion compared with N79.84 billion recorded in the previous week.

The Fourth Federal Government of Nigeria (FGN) Bond, 2012 Series 5 enjoyed the most patronage in the sector, accounting for 9.92 per cent of the market turnover, with 3.1 million units valued at N3.24 billion in three deals.
Following was the Fourth FGN Bond 2017 Series 8, accounting for 9.28 per cent of the market turnover, with three million units valued at N3.25 billion in four deals.

Of the 41 FGN Bonds available, only 13 recorded the patronage of investors, compared to 21 in the preceding week.There were no transactions in the Federal Government Development Stocks, State Government Bonds and Preference Stocks sectors.

Meanwhile, the shares reconstruction exercise of Goldlink Insurance Plc announced was concluded last week. The shares were reconstructed in the ratio of two ordinary shares for one ordinary share. As a result, the new issued shares of the company is now 4.55 billion ordinary shares of N0.50 each at N1.00 per share.

Therefore, the full suspension placed on the Company’s shares on November 24, 2009 was subsequently lifted.
Also, a number of corporate actions were announced in the week under review. Nigerian Enamelware Plc, in its audited result for the year ended April 30, 2009, recorded a turnover of N2.41 billion as against N1.51 billion during the 7 months ended April 2008, while its Profit after tax stood at N63.5 million compared with N19.8 million in 2008. The Board of Directors is recommending a dividend of N0.40 per share.

In its audited result for the year ended, September 30, 2009 Nampak Nigeria Plc recorded a turnover of N4.13 billion compared with N2.98 billion recorded in 2008, it posted a profit after tax of N42.53 million compared with a loss after tax and exceptional items of N231.02 million in 2008.

Ashaka Cement Plc announced a profit after tax of N1.19 billion, in its unaudited result for the third quarter ended September 30, 2009 compared with N2.12 billion in 2008, while its turnover stood at N12.71 billion as against N15.72 billion in the comparable period of 2008.

Crusader (Nigeria) Plc, in its unaudited result for the third quarter ended, September 30, 2009, announced a turnover of N3.17 billion, as against N2.44 billion in the comparable period of 2008, while its loss after tax and exceptional items stood at N245.14 million compared with profit after tax and exceptional items of N774.8 million in 2008. \

The Company made provision for bad and doubtful debts of N171.72 million, down from N272.43 million during the same period in 2008.


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