Economy
FGN Bond Prices Rise on Buy Pressure
By Cowry Asset
In the just concluded week, CBN on behalf of Debt Management Office auctioned FGN bonds worth N100 billion, viz: 5-year 14.50% FGN JUL 2021 paper worth N50 billion and 10-year, 16.29% FGN MAR 2027 bond worth N50 billion. Their respective marginal rates moderated to 3.19% and 3.21% from 14.79% and 14.80% in line with our expectation.
Meanwhile, against the backdrop of boost in financial system liquidity, local OTC bond prices gained (and yields fell) across the maturities tracked amid sustained bargain hunting activity.
Specifically, the 20-year, 10.00% FGN July 2030 bond, the 10-year, 16.39% FGN JAN 2022 paper, the 7-year, 16.00% FGN JUN 2019 paper and the 5-year, 14.50% FGN JUL 2021 paper gained N1.80, N2.42, N1.74 and N3.46 respectively while their corresponding yields declined to 14.00% (from 14.38%), 13.60% (from 14.35%), 13.70% (from 14.98%) and 13.32% (from 14.56%).
Elsewhere, FGN Eurobonds prices gained across the maturities on the back of renewed bargain hunting activity on the London Stock Exchange.
Specifically, the 10-year bonds, 6.75% JAN 28, 2021 and 6.38% JUL 12, 2023 shed N0.30 and N0.83 respectively (corresponding yields decreased to 4.55% and 5.12% from 4.66% and 5.29% respectively) while the 5-year, 5.13% JUL 12, 2018 bond gained N0.13 (yield fell to 3.19% from 3.46%).
This week, we anticipate bargain hunting at the OTC market, with resultant price increase amid expectation of boost in liquidity.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange surged by 2.05 per cent on Thursday, August 6, amid fresh buying interest after a lukewarm preceding session.
The market capitalisation gained N56.21 billion to close at N2,795 trillion compared with the previous session’s N2.739 trillion, while the NASD Security Index (NSI) rose by 93.63 points to end at 4,657.59 points against Wednesday’s 4,563.96 points.
During the trading day, there were five price gainers and two price losers, led by Okitipupa Plc, which depreciated by N28.00 to settle at N252.00 per share compared with the previous day’s N280.00 per share, and Acorn Petroleum Plc, which fell by 5 Kobo to close at N1.25 per unit versus midweek’s N1.30 per unit.
On the flip side, 11 Plc gained N22.5o to sell at N247.50 per share versus N225.00 per share, MRS Oil Plc grew by N12.00 to N132.00 per unit from N120.00 per unit, Central Securities Clearing System (CSCS) Plc added N9.94 to end at N129.74 per share versus N119.00 per share, FrieslandCampina Wamco Nigeria Plc improved by N4.09 to N148.09 per unit from N144.00 per unit, and Industrial and General Insurance (IGI) Plc expanded by 5 Kobo to 55 Kobo per share from 50 Kobo per share.
The volume of securities skyrocketed by 360,690.4 per cent to 2.9 million units from 802 units on Wednesday, the value of securities surged by 47,518.0 per cent to N99.2 million from N208,240, and the number of deals increased by 300 per cent to 62 deals from two deals a day earlier.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units transacted for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units traded for N6.5 billion, and CSCS Plc with 77.0 million units sold for N5.5 billion.
GNI Plc also ended as the most traded stock by on a volume year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units worth N415.7 million.
By Adedapo Adesanya
The Naira further slipped against the United States Dollar by N2.33 or 0.17 per cent to N1,364.88/$1 from N1,362.55/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, August 6.
In the same vein, the domestic currency weakened against the Pound Sterling in the official FX market by 71 Kobo yesterday to trade at N1,838.09/£1, in contrast to Wednesday’s value of N1,837.38/£1, but against the Euro, it gained 45 Kobo to close at N1,574.80/€1 compared with the previous day’s N1,575.25/€1.
At the GTBank FX desk, the Naira improved its value against the US Dollar by N4 on Thursday to quote at N1,369/$1 versus midweek”s rate of N1,373/$1, but at the parallel market, it remained unchanged at N1,400/$1.
The NAFEM interbank FX turnover jumped to $98.804 million on Thursday, up by more than 31 per cent from $75.357 million the previous day.
Similarly, the number of deals at the NFEM interbank increased to 106 from 82, confirming higher US Dollar flows at the official FX market.
Traders expect the Naira to hold steady, buoyed by dollar sales by the Central Bank of Nigeria (CBN), whose presence in the market will help ease demand pressure.
In the cryptocurrency market, major cryptocurrencies were mostly down as the Senate delayed a vote on the Crypto Clarity Act until at least September.
The bill, which would set out which U.S. regulator oversees which digital assets, needs 60 votes to pass, and it is unclear whether it currently has 50. Several Republican senators have said publicly they oppose it, and Democrats want stricter rules preventing President Donald Trump from profiting from crypto while in office.
Ripple (XRP) shrank by 2.5 per cent to $1.02, Solana (SOL) depleted by 1.5 per cent to $72.86, Binance Coin (BNB) fell by 1.4 per cent to $587.41, Dogecoin (DOGE) tumbled by 0.9 per cent to $0.0692, Bitcoin (BTC) decreased by 0.6 per cent to $64,344.69, and Ethereum (ETH) tumbled by 0.3 per cent to $1,902.03.
However, Cardano (ADA) appreciated by 7.7 per cent to $0.2025, and TRON (TRX) rose by 0.3 per cent to $0.3267, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Dipo Olowookere
Buying interest in consumer goods, energy and banking stocks further raised the Customs Street by 0.12 per cent on Thursday despite profit-taking in the insurance and industrial goods sectors.
According to data from the Nigerian Exchange (NGX) Limited showed that the banking index grew by 0.62 per cent, the consumer goods space rose by 0.15 per cent, and the energy counter increased by 0.06 per cent, while the insurance sector crashed by 0.93 per cent, with the industrial goods segment flat.
At the close of business, the All-Share Index (ASI) went up by 297.10 points to 245,209.34 points from 244,912.24 points, and the market capitalisation gained N191 billion to finish at N158.278 trillion compared with the previous day’s N158.087 trillion.
Eterna led the gainers’ log yesterday after it chalked up 10.00 per cent to settle at N36.30, ACA Capital improved by 9.63 per cent to N11.95, Legend Internet expanded by 9.52 per cent to N4.60, FCMB jumped by 8.55 per cent to N12.70, and Honeywell Flour surged by 7.98 per cent to N17.60.
On the flip side, Fortis Global Insurance led the losers’ chart after it shed 10.00 per cent to trade at N2.52, Ecobank declined by 9.99 per cent to N72.10, Chellarams depleted by 9.85 per cent to N11.90, Thomas Wyatt dipped by 9.83 per cent to N3.21, and UPDC slipped by 8.45 per cent to N3.25.
During the trading day, 531.8 million shares worth N20.5 billion exchanged hands in 44,826 deals compared with the 824.1 million shares valued at N25.5 billion transacted in 48,114 deals on Wednesday.
This indicated that the volume of trades was down by 35.47 per cent, the value of transactions depreciated by 19.61 per cent, and the number of deals decreased by 6.83 per cent.
The busiest stock for the session was FCMB, which traded 131.7 million units for N1.6 billion, First Holdco transacted 43.5 million units worth N6.0 billion, AVA Capital exchanged 36.3 million units valued at N432.0 million, Chams traded 36.3 million units sold 36.3 million units valued at N149.8 million, and Access Holdings ended with a turnover of 24.4 million units worth N638.8 million.
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