…As DMO says N295m allotted to 409 September savings bond subscribers***
The Nigerian Stock Exchange (NSE) on Thursday sustained positive trend on post-election tribunal ruling, with market capitalisation rising by N142 billion, to close at N13.351 trillion against N13.209 trillion recorded on Wednesday.
Also, the All Share Index rose by 273.11 points or 1.01 per cent to close at 27,426.64 compared with 27,153.53 achieved on Wednesday.
President Muhammadu Buhari’s victory in the 2019 presidential election was upheld by the tribunal after it dismissed the petition filed by Alhaji Atiku Abubakar on Wednesday.
The market trend was impacted by gains recorded in medium and large capitalised stocks, among which are; Nestle Nigeria, Forte Oil, Dangote Sugar Refinery, Guaranty Trust Bank and Lafarge Africa.
Analysts at Afrinvest Ltd said that “In yesterday’s trading session, increased buying interest across board spurred the market in the positive direction.
“However, we expect profit-taking activities to drag market performance at the close of the week.”
Market breadth closed positive as 22 stocks recorded gains, relative to seven losers.
AIICO Insurance recorded the highest price gain of 9.84 per cent, to close at 67k per share.
Forte Oil followed with a gain 9.64 per cent to close at N15.35, while UACN Property Development Company appreciated by 9.60 per cent to close at N1.37 per share.
Dangote Sugar Refinery went up by 9.41 per cent to close at N9.30, while Chams appreciated by 8.33 per cent to close at 26k per share.
Conversely, Jaiz Bank led the losers’ chart by five per cent, to close at 38k per cent.
NPF Micro Finance Bank followed with a decline of 4.31 per cent to close at N1.11, while Unity Bank lost 4.29 per cent to close at 67k, per share.
Lasaco Assurance lost 3.45 per cent to close at 28k, while NASCON shed 2.31 per cent to close at N12.70, per share.
Transactions in the shares of Access Bank topped the activity chart with 17.01million shares valued at N119.26 million.
Transcorp came second with a turnover of 14.68 million shares worth N15.04 million, while Union Bank of Nigeria sold 10.06 million shares valued at N70.39 million.
FBN Holdings traded 9.96 million shares worth N50.44 million, while Guaranty Trust Bank transacted 7.29 million shares valued at N198.76 million.
In all, total volume traded dropped by 45.39 per cent as investors bought and sold 115.52 million shares worth N854.29 million traded in 2,816 deals.
This was against 211.52 million shares valued at N1.45 billion transacted in 4,365 deals on Wednesday.
In the meantime, the Debt Management Office (DMO), says N295.9 million was allotted to 409 subscribers during its savings bond auction in September.
The results of the sales obtained from the DMO website on Thursday in Abuja, showed that N91.11 million was allotted for Sept. 2021 at 11.15 per cent.
It also indicated that N204.8 million was allotted at 12.15 per cent for the Sept. 2022 papers.
Savings bond issuance is expected to help finance the nation’s budget deficit.
The bond issuance is part of the Federal Government’s programme targeted at the lower income earners to encourage savings and also earn more income (interest), compared to their savings accounts with banks.
The bonds are debt securities (liabilities) of the Federal Government, backed by its ‘full faith and credit.’
Interests are to be paid at regular periods and principal repaid at maturity.
The bonds have a tenure of between two years to three years and a minimum size of investment of N5,000 and maximum of N50 million.
The bond is aimed at deepening national savings culture, diversifying funding sources for the government and providing opportunity to all citizens, irrespective of income level, to contribute to national development.
It will also enable all citizens to participate and benefit from the favourable returns available in the capital market.