…As DMO offers N150bn from 3 instruments***
Activities on the Nigerian Stock Exchange (NSE) maintained positive trend on Wednesday with crucial market indices growing further by 0.14 per cent, and market capitalisation inching by N18 billion to close at N12.923 trillion against the N12.905 trillion achieved on Tuesday.
Also, the All-Share Index, which opened at 26,739.44, rose by 36.71 points or 0.14 per cent to close at 26,776.15.
The upturn was impacted by gains recorded in medium and large capitalised stocks of Nigerian Breweries, Conoil, UBA, FBN Holdings and Access Bank.
Consequently, the Month-to-Date return increased to +1.60 per cent, while the Year-to-Date loss moderated to -14.81 per cent.
Commenting on market performance, Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., said that the market would continue to experience mixed performance.
“We expect mixed performance to continue, profit-taking and repositioning in value stocks as market players digest the rising inflation and its impacts on investment returns,” Omordion said.
He said that the changing sentiments in expectation of improved liquidity as interest rates drop in the money market ahead of the MPC meeting should guide investors.
According to him, the current undervalued state of the market offers investors opportunities to position for short and medium-to-long-term.
The market breadth closed positive with 24 price gainers and price 10 losers.
Chams led the gainers’ chart in percentage terms, appreciating by 10 per cent, to close at 33k per share.
LearnAfrica followed with a gain 9.48 per cent to close at N1.27, while Conoil increased by 9.47 per cent to close at N18.50 per share.
Cornerstone Insurance garnered 9.38 per cent to close at 70k, while NPF Microfinance Bank appreciated by 9.09 per cent to close at N1.20 per share.
Conversely, NASCON led the price losers’ chart in percentage terms with a loss of 5.72 per cent to close at N14 per share.
Lasaco Assurance followed with a decline of 3.57 per cent to close at 27k, while Wapic Insurance dipped by 2.86 per cent to close at 34k per share.
Unity Bank lost 2.78 per cent to close at 70k, while AIICO Insurance shed 2.74 per cent to close at 71k per share.
Meanwhile, the total volume of shares traded decreased by 32.22 per cent to 267.31 million valued at N3.05 billion in 4,074 deals.
Access Bank was the most traded stock with an exchange of 63.53 million valued at N643.70 million.
UBA followed with a total of 44.86 million shares worth N338.65 million, while Zenith Bank traded 24.09 million shares valued at N451.63 million.
FBN Holdings accounted for 16.82 million shares valued at N119.31 million, while Guaranty Trust Bank transacted 14.26 million shares worth N414.07 million.
Meanwhile, the Debt Management Office (DMO) on Wednesday offered N150 billion from three Instruments. five- year, 10-year and 30-year bonds for N50 billion each to investors at the auction.
The statement issued by DMO in Abuja indicated that the bond Auction by the DMO which took place on Wednesday, Nov. 20, was highly oversubscribed.
The DMO explained that the total subscriptions received through Competitive bids for the instruments at the Auction was N252.35 billion, indicating a subscription level of 168.23 per cent.
It said that the trend of investors’ appetite for the longer tenored instruments continued with subscription of N115.09 billion or 230.18 per cent for the 30-year Bond.
According to the statement, the successful bids are allotted at the rate of 12.0000 per cent for the 5-year, 12.9300 per cent for the 10-year and 13.3900 per cent for the 30-year Bonds.
“The allotment rates indicated a significant decline from the rates at which the Bonds were issued at the October 2019 FGN Bond Auction.
“The total amount allotted for Competitive Bids was N157.93 billion across the three tenors. In addition, the sum of N95.00 billion was allotted through Non-Competitive Bids for all the tenors at the same rates as the Competitive Bids.
“Overall, the sum of N252.93 billion is allotted to investors at the auction through both Competitive and Non-Competitive Bids” it added.