RoI: NGX tasks investors on portfolio diversification

By Nkiruka Nnorom

Nigerian Exchange Limited (NGX) has listed new issuances worth N1.7 trillion and Eurobonds worth $4 billion on its platform in the first quarter of 2022 (Q1’22).

The issuances listed across both the bonds and equities markets, according to the NGX, in a statement, are integral in deepening the market, improving liquidity and tradability, as well as increasing access to capital to fund growth initiatives.

Under the NGX’s bond market, the Federal Government of Nigeria dominated issuances, raising about N589.05 billion locally and listing $4 billion in Eurobonds. Corporates also leveraged the low yield environment to fund expansion objectives and pursue debt refinancing, raising a total of N35.3 billion.

In the equities market, NGX started the year with the landmark listing of BUA Foods’ 18 billion units of shares listed at N40 per share, adding N720 billion to the NGX market capitalisation. Abbey Mortgage Bank also listed its right issue of about N3.03 billion, while Access Holdings, following its adoption of a holdco structure, listed 35.545 billion new shares valued at N353.675 billion.

NGX said: “It is not a secret that capital is critical for business growth either in form of debt through bonds, or equity through shares. The Exchange, as an important component of the capital market, therefore plays a significant role in the capital formation process because of the tremendous opportunities that ensue from its activities.

“It is expected that a thriving Exchange will continue to mobilize long-term savings to finance long-term investment by providing risk capital in the form of equity or quasi-equity to entrepreneurs, a role NGX continues to prioritize.”

It will be recalled that NGX highlighted five major focus areas in 2022 in its efforts to deepen access and attract new generation of investors to the market. The Chief Executive Officer, NGX, Mr. Temi Popoola, said the Exchange would drive its growth in 2022 by focusing on five strategic areas including building on digital transformation, listings and de-listings, technology, partnerships and sustainability.

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