…As DMO says July bond auction gets 207% subscription level***
The market indices of Nigerian Stock Exchange (NSE) recorded 0.20 per cent loss on Wednesday following price loses by Nestle and Dangote Cement. The negative trend tilted the market capitalization to shed N27bn, to close to close at N13.689 trillion, from its opening status, which stood at N13.716 trillion.
Also, the All-Share Index dipped by 56.13 points or 0.20 per cent to close at 28,088.74 from the 28,144.87 achieved on Tuesday.
Nestle recorded the highest price loss of N27 to close at N1,300 per share. When Dangote Cement trailed with a loss of N3 to close at N171, while Total depreciated by N2.40 to close at N127.50 per share.
Lafarge Africa was down by 25k to close at N14.15, while Guaranty Trust Bank also shed 25k to close at N28.75 per share.
On the other hand, Seplat led the price gainers’ table, appreciating by N45 to close at N525 per share.
Nigerian Breweries followed with a gain of N3.90 to close at N60, while BoC Gases added 46k to close at N5.07 per share.
C & I Leasing rose by 45k to close at N5, while Access Bank advanced by 10k to close at N6.65 per share
In spite of the drop in market indices, the volume of shares traded grew by 16.73 per cent as investors exchanged 157.79 million shares valued at N2.52 billion in 3,253 deals.
These were in contrast with the 135.18 million shares worth N2.09 billion exchanged in 3,358 deals on Tuesday.
GTB was the most active stock, trading 33.59 million shares valued at N971.44 million.
UBA followed with 30.73 million shares worth N173.48 million, while Zenith Bank traded 22.89 million shares valued at N428.16 million.
Sterling Bank sold 11.44 million shares worth N26.053 million, while Transcorp accounted for 9.34 million shares valued at N9.41 million.
However, the Debt Management Office (DMO) has a positive story to tell, as it indicated that the N145 billion offered for three instruments in the July bond auction actually received a total value of N301.02 billion, showing a subscription level of 207.6 per cent.
In a statement the DMO issued in Abuja, it said the auction which took place on Wednesday received 298 competitive bids from investors for the three instruments of five, 10 and 30-year tenure that were offered.
It, however, said that overall, N145.02 billion was raised at the auction through both competitive and non-competitive bids.
“The total amount allotted for competitive bids was N86.82 billion from the total subscription of N301.02 billion.
“In addition, the sum of N58.20 billion was allotted across the three tenors for non-competitive bids at the same rates with the competitive bids.”
The DMO added that allotments were made on successful bids at 13.35 per cent for the five-year, 13.64 per cent for the 10-year and 14.12 per cent for the 30-year bonds.
These, it said, were consistent with secondary market yields and also represented a decline in the marginal rates compared with those at the June bond auction.
“The amount raised is to be utilised to part-finance the 2019 budget of the Federal Government,” the DMO said.
Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.