NGX admits DMO’s N130 billion Sukuk as total issuance hits N742 billion in six years

•Gains in MTNN, 35 stocks lift capitalisation by N542b

Nigerian Exchange Limited (NGX) has announced the listing of the Federal Government’s (FGN) N130 billion Sovereign Sukuk through the Debt Management Office (DMO) on its platform. The 10-year 15.64 per cent Ijara Sukuk due 2032 was listed on NGX yesterday.

Besides, the DMO disclosed that the total Sovereign Sukuk issued from 2017 till date currently stands at N742.557 billion, even as the proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country.

According to DMO, the N130 billion Sovereign Sukuk opened for subscription in November 2022 with an initial offer of N100 billion and garnered immense interest from investors with a remarkable subscription level of N165.25 billion. This represented over 165 per cent of the amount offered. In a bid to accommodate the needs of diverse investors who subscribed to the sukuk, N130 billion was allocated.

The listing of the N130 billion Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery.

Divisional Head of Capital Markets at NGX, Jude Chiemeka, commended the DMO for their effective implementation and commitment to following due process in infrastructure financing. He emphasised the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.

“This listing demonstrates the Federal Government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures. NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth.

“The listing of the Sovereign Sukuk on the exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market.”

Meanwhile, transactions on the equities sector of NGX sustained rising profile yesterday as gains in MTN Nigeria (MTNN) and 35 stocks lifted market capitalisation further by N542 billion

At the close of transactions yesterday, the benchmark NGX All-Share index, which opened the trading month at 64,267.36 points, closed at 65,263.06 points, representing 995.7 points or 1.53 per cent growth.

Also, market capitalization- listed value of equities, rose by N542 billion from N34, 973 trillion to N35, 515 trillion.

The upturn was impacted by price depreciation in large and medium capitalised stocks amongst, which are MTN N, Nigerian Breweries (NB), National Salt Company of Nigeria, Dangote Sugar Refinery, PZ Cussons, GTCO, United Bank for Africa and Fidelity Bank.

As measured by market breadth, market sentiment was positive, as 36 stocks gained while 10 constituted the losers’ chart. Analysts at Vetiva Dealings and Brokerage, said: “As investors continue to anticipate earnings reports from the tier-I banks, we expect the sector to dominate market activity tomorrow.”

NB, PZ Cussons and Sterling Bank topped the gainers chart in percentage terms, adding 10 per cent each to close at N3.80 kobo, N1.65 kobo and 33 kobo while Chellaram followed with 9.96 per cent to close at N3.09 kobo.

Dangote Sugar Refinery added 9.95 per cent to close at N35.90 kobo, NASCON garnered 9.93 per cent to close at N39.30 kobo. Fidelity Bank advanced by 9.46 per cent to close at N8.10 kobo. GlaxoSmithKline appreciated by 9.46 per cent tom close at N8.10 kobo. Prestige Assurance also added 9.30 per cent to close at 47 kobo.

However, Eterna emerged the day’s highest price loser, shedding 9.83 per cent to close at N23.40 kobo while JohnHolt trailed with a loss of 9.82 per cent to close at N1.47 kobo.

ThomasWyatts shed 9.40 kobo to close at N1.06 kobo. MCNichols depreciated by 9.33 per cent to close at 68 kobo. Courtville dropped 9.09 per cent to close at 60 kobo. Stanbic IBTC depreciated by 6.47 per cent to close at N65. RTBriscoe declined by 5.88 per cent to close at 48 kobo. Custodian &Allied insurance also depreciated by 4.46 per cent to close at N7.50 kobo.

Volume of transactions increased by 114.491 million, representing 34.61 per cent as investors traded 445.275 million shares worth N5.087 billion in 7095 deals.against 330.784 million shares cost N4.269 billion exchanged hands the previous day in 6251 deals.

Trading in the shares of Sterling Bank led market activities with 69.452 million shares valued at N238.093 million, FCMB group followed with account 33.332 million shares cost N217.816 million, AccessCorp traded 32.985 million shares valued at N568.981 million, Japaul Gold traded 28.366 million shares cost N28.846 million, Fidelity Bank exchanged 27.351 million shares cost N219.595 million.