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FGN bonds trading rises by 287% in one week

…as profit taking depreciates NSE value by N16bn…
Trading activities in Federal Government Bonds listed on the Nigerian Stock Exchange increased  by 286.8 per cent last.

Specifically, 6460 units of FGN bonds valued at N7.97 million were traded in 21 deals in contrast to 1,670 units of FGN bonds valued at N2.087 million traded in 41 deals the preceding week.

Also traded during the week were 339 units of NewGold Exchange Traded Funds (ETFs) valued at N854,813 exchanged hands in six  deals in contrast to a total of 539 units valued at N1.382 million transacted last week in four  deals.

However, there were no transactions in the State/Local Government Bonds and Corporate Bonds/Debentures sectors since they had been listed on the secondary market three weeks ago.

Meanwhile, the total value of equities (market capitalisation) listed on the Exchange depreciated by N16.07 billion last week due to investors taking profit from the upward trend recorded in previous weeks.

The market capitalisation depreciated marginally by 0.15 per cent to close at N10.64 trillion from N10.65 trillion; also, the All-Share Index declined marginally by 55.04 points or 0.17 per cent to close at 33,258.45 points down  from 33,313.49 points the previous week.

Forty-two (42) stocks recorded price decline  in the week under review compared to  eighteen (18) stocks that  recorded  price decline in the previous week. Livestock Plc topped the losers chart with 17.44 per cent depreciation to close at N2.13 per share from N2.58 per share. This was followed by Ikeja Hotel Plc which lost 15.04 per cent to close at N0.96 per share and Forte Oil Plc which also lost  14.46 per cent to close at N14.26 per share, among others.

On the contrary, the numbers of gainers last week dropped to fifty-one (51) from seventy-one (71) previous week. Royal Exchange Plc topped the gainers chart with 29.03 per cent appreciation to close at N1.20 per share from N0.27 per share. This was followed by Wapic Insurance Plc, which gained 24.78 per cent to close at N1.41 per share,  and Cornerstone Insurance Plc, which also  rose by 24.14 per cent to close at N0.72 per share.

A review of market activities for the week revealed that equities experienced continued moderate bargain position on Monday, extending uptrend by 0.59 per cent to open the week on positive note as investors remained optimistic.

However, the key benchmark indices slipped on Tuesday by 0.07 per cent on the back of increased speculative trading. ASI fell further on Wednesday as investors increased pessimistic trading, plunging by 0.40 per cent while the profiteering continued on Thursday to close market with a margin loss of 0.04 per cent as Dangote Cement cushioned the sell pressure.

Subsequently, equities lost breadth on Friday as market succumbed to increased volatility to end the week with aggregate loss of 0.17 per cent.

Meanwhile, the total volume of equities traded last week appreciating by 19 per cent, to close at 4.25 billion units and valued at N23.19 billion in 39,412 deals compared with 3.57 billion units valued at N22.69 billion exchanged in 39,321 deals penultimate week.

Financial Services sector emerged the most traded sector in the week in terms of volume. The volume traded in the sector this week alone closed at 3.25 billion units, valued at 14.33 billion and exchanged in 23,835 deals compared with 2.52 billion units, valued at N16.33 billion and exchanged in 23,085 deals in the preceding week. The volume traded in the sector accounted for 76.53 per cent of the entire market compared with 70.75 per cent of the ratio recorded preceding week.


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