…As DMO says N145bn worth of bonds to be auctioned July 24***
The All-Share Index of the Nigerian Stock Exchange (NSE) on Thursday reached all time low of 27,864.49 due to sell pressure in Seplat and 18 other equities.
The index lost 178.31 points or 0.64 per cent to close lower at 27,864.49 against 28,042.80 achieved on Wednesday.
Also, the market capitalisation, which opened at N13.666 trillion shed N87 billion or 0.64 per cent to close at N13.579 trillion.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Seplat, International Breweries, MTN Nigeria, Nigerian Breweries and Ecobank Transnational Incorporated (ETI).
Capital market analysts said that bearish sentiment on the nation’s bourse deepened further on Thursday, as the market performance indicator (NSE-ASI) fell to 27,000 index points, the lowest in the last 26 months.
Analysts at Afrinvest Limited noted that “we expect the market to trade bearish in the sessions ahead.”
Analysts at Cordros Capital Limited maintained that “our outlook for equities in the short to medium term remains conservative, amidst the absence of any catalyst to drive positive market returns.”
The market breadth was negative, with 12 gainers compared with 19 losers.
Conoil recorded the highest price gain in percentage terms, appreciating by 9.76 per cent to close at N20.25 per share.
Dangote Sugar Refinery followed with a gain of 9.22 per cent to close at N11.25, while Sovereign Trust Insurance appreciated by five per cent to close at 21k per share.
Japaul Oil & Maritime Services went up by 4.76 per cent to close at 22k, while FCMB Group appreciated by 4.58 per cent to close at N1.60 per share.
Conversely, Berger Paints and International Breweries led the losers’ chart by 10 per cent, each to close at N6.30 and N17, respectively.
Seplat followed with a lose of 9.43 per cent to close at N5.30 per share.
C &I Leasing and NEM Insurance depreciated by 9.17 per cent each to close at N4.95 and N2.08, while ETI declined by 9.05 per cent to close at N9.05 per share.
The volume of shares traded closed lower with an exchange of 175.36 million shares valued at N2.71 billion in 2,653 deals.
This was in contrast with 243.72 million shares worth N3.89 billion exchanged in 3,449 deals on Wednesday.
Transactions in the shares of FBN Holdings topped the activity chart with 33.33 million shares valued at N189.9 million.
Zenith Bank followed with a turnover of 21.27 million shares worth N395.12 million, while Sterling Bank traded 16.75 million shares valued at N35.56 million.
United Bank for Africa (UBA) sold 16.28 million shares worth N90.37 million, while Access Bank sold 9.35 million shares worth N56.81 million.
On the Government side, the Debt Management Office (DMO) indicated on Thursday that Federal Government has offered for subscription by auction, N145 billion worth of bonds in its July 24 auction.
The offer circular obtained from its website on Thursday in Abuja, stated that it would sell N40 billions of a five year re-opening issue maturing in April 2023 at 12.75 per cent.
It would also sell N50 billion 10 year re-opening bond to mature in April 2029 at 14.55 per cent, and another N55 billion 30 year re-opening at 14.80 per cent to mature in April 2049.
According to DMO, units of sale is N1, 000 per unit, subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.
The DMO explained that the bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while bullet repayment would be made on maturity date.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.