Markets
GTBank and UBA hit new year lows, as NSE continues slide
The bleeding on the Nigerian Stock Exchange (NSE) slowed down.
The bleeding on the Nigerian Stock Exchange (NSE) slowed down, as the All Share Index closed at 33,449.17 points, down 0.48%. Year to date, the index is down 12.54%.
Top Gainers and Losers
Law Union and Rock Insurance was the best performing stock, in today’s session. The stock closed at N0.55, up 10%. Nestle Nigeria recovered a huge chunk of yesterday’s losses as it N14.85, up 9.59%. Regency Alliance Insurance rounds up the top three gainers, as it closed at N0.23, up 9.52%.
Dangote Sugar Refinery Plc was the worst performing stock in today’s trading session, as it closed at N14.40, down 10%. NAHCO Aviance Plc closed at N3.60, down 10%. Universal Insurance closed at N0.30, down 9.09%.
Top Trades by Volume
Guaranty Trust Bank was the most traded stock by volume. 17.4 million shares valued at N562 million were traded in 359 deals. The stock hit a new year low today.
15.5 million UBA shares valued at 117 million were traded in 229 deals. Diamond Bank rounds up the top 3 trades by volume as 13.8 million shares valued at N18.6 million were traded in 62 deals.
Corporate Actions
Julius Berger Plc
Julius Berger Plc will hold a board meeting on Thursday 25th of September 2018 to consider changes in the organisational structure of the company. The company has declared a closed period from September 13, 2018, to September 27, 2018.
RT Briscoe Plc
RT Briscoe Plc released its results for the financial year ended December 2017. Revenue fell from N9.8 billion in 2016 to N4.3 billion in 2017. Loss before tax increased from N2.8 billion in 2016 to N3.1 billion in 2017. Loss after tax also increased from N2.9 billion in 2016 to N3.1 billion in 2017.
Stock Market
DANGOTE CEMENT, GUINNESS drops lower, as investors lose N75.07 billion
Nigerian bourse recorded its second trading loss for the week.
The Nigerian Stock Exchange on Tuesday closed bearish. The All Share Index dropped by 0.58% to close at 24,883.70 basis points as against -0.06% drop recorded on Monday.
Its Year-to-Date (YTD) returns currently stands at -7.30%. Nigerian bourse’s market capitalization presently stands at N12,981 trillion. Investors’ losses recorded today stood at N75.07 billion.
Trading volume turnover closed positive as volume moved up by +17.84% as against +4.90% uptick recorded in the previous session. ACCESS, FIDELITYBK, and GUARANTY were the most active to boost market turnover.
Market breadth closed negative as CADBURY led 16 Gainers as against 17 Losers topped by PRESTIGE.
Top gainers
- CADBURY up 6.82% to close at N7.05
- NB up 6.25% to close at N34
- ARDOVA up 4.94% to close at N12.75
- VALUEFUND up 1.37% to close at N115.05
- GUARANTY up 1.02% to close at N24.8
Top losers
- IKEJAHOTEL down 9.82% to close at N1.01
- MANSARD down 8.23% to close at N1.45
- DANGCEM down 4.09% to close at N136
- GUINNESS down 3.33% to close at N14.5
- UCAP down 3.09% to close at N3.14
Outlook
Nigerian bourse recorded its second trading loss for the week, triggered by high selling pressures notable in DANGCEM and GUINNESS.
Nairametrics, however, recommend you seek the counsel of a certified financial advisor when buying stocks.
Commodities
Gold price loses $80 following Russia’s COVID-19 vaccine approval
This marks gold’s steepest daily decline in nearly five months.
Gold futures has lost about 5% or $80 in less than four hours, at the London trading session this afternoon.
Gold futures fell as low as $1,950 per ounce, $80 differential from its opening price of $2,030
This marks gold’s steepest daily decline in nearly five months, even as global stocks went bullish following news that Russia’s COVID-19 vaccine has obtained regulatory approval.
READ MORE: Cocoa prices melt lower as COVID-19 weakens demand
The COVID-19 vaccine approval by Russia was met with some skepticism by experts.
More details shortly…
Debt Securities
DMO offers N150 billion worth of FGN Bonds for subscription
FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria.
The Federal Government on Tuesday, 11th August 2020, through the Debt Management Office (DMO), offered for subscription Federal Government Bonds (FGN Bonds) valued at N150 billion.
The FGN bonds are listed in four tranches that include:
- N25,000,000,000 – 12.50% FGN JAN 2026 (10-Yr Re-opening)
- N40,000,000,000 – 12.50% FGN MAR 2035 (15-Yr Re-opening)
- N45,000,000,000 – 9.80% FGN JUL 2045 (25-Yr Re-opening)
- N40,000,000,000 – 12.98% FGN MAR 2050 (30-Yr Re-opening)*
READ: UBA reports a 13.3% profit increase in audited FY 2019 financial statement
Auction Date: August 19, 2020
Settlement Date: August 21, 2020
Summary Of The Offer
Issuer: Federal Government of Nigeria (“FGN”)
Units Of Sale: N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.
Interest rate: For Re-openings of previously issued bonds, (where the coupon is already set), successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus accrued interest from the original issue date.
READ ALSO: Nigeria’s Eurobond yield hit 12.8% as investors flee emerging markets
Interest payment: Payable semi-annually.
Redemption: Bullet repayment on the maturity date.
Status:
- Qualifies as securities in which trustees can invest under the Trustee Investment Act
- Qualifies as Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”) for Tax Exemption for Pension Funds amongst other investors
- Listed on the Nigerian Stock Exchange
- All FGN Bonds qualify as liquid assets for liquidity ratio calculation for banks
Security: FGN Bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of Nigeria
Understanding Bonds: A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
A bond could be thought of as an I.O.U. between the lender and the borrower that includes the details of the loan and its payments.
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A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower.
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DMO offers N150 billion worth of FGN Bonds for subscription
