FGN Bonds Rallied On Inflation Figure Release


The inflation figure released by the National Bureau of Statistics for the month which ended February 2012 led to insurgence of activities in the secondary market last week according to capita market analysts.

Over-the-Counter (NTC) market for the FNC Bonds recorded a turnover of 91.23 million units worth N76.1 billion in 875, deals up from a total of 71.201 million units sold at N57.3 billion exchanging hands in 525 deals during the week that ended March 15, 2012.

The inflation figure for the month of February stood at 11.90 per cent down by 70bps from 12.60 per cent recorded in January 2012 while the MPC retained MPR at 12.60 per cent, according to data by the NBS.

In volume terms, the most active bond for the week ended March 24 was the 10.0 per cent FGN July 2030 (seventh FGN Bonds 2030 series three) which traded 22.3 million units valued at N16.6 bullion recorded in 186 deals.

The 10,5 per cent FGN March 2014 (the 8rh FGN Bond 2014 series one) followed with a transaction volume of 19.4 million units at the value of N17.9 billion in 176 trades. A total of eight out of the 26 available FGN bonds were traded in the week under review as against seven that were traded in the preceding week.

Also there was primary auction in the treasury bills market as N37.49 billion worth of 91 days bills was traded at the rate of 14.30 per cent compared with 14.18 per cent at the previous auction while N49.35 billion worth of 182 day bills was traded at the rate of 15.00 pre cent during the last auction. Total subscription during the auction stood at N326.58 billion as against N328.58 billion at the last auction according to market report.

At the equities sector, a transaction volume of 12.2 billion units of shares valued at N15.7 billion were recorded in 17,979 trades during the review week up from 1.975 billion units of shares at the value of N18,95 billion traded in the previous week in 18,651 deals.

The financial service sector of the equities market accounted for 926.65 million units of shares recorded in 10,539 deals at the value of N6,54 million followed by the consumer goods sector which transacted 134.3 million units of shares at N7.81 billion in 3,117 trades.

The most active was the banking sub-sector of financial services sector when measured by volume as it recorded a turnover of 919.5 million units of shares exchanged by investors in 9;789 transactions at the value of N6.5 billion.

Activity in the shares of Zenith Bank Plc, United Bank of Africa *UBA) Plc, Access Bank Plc Lifted the volume recorded in the banking sub-sector during the week under review.

The three banks recorded a total of 443.0 million units of shares which represents 54.1 per cent, 47.8 per cent and 36.56 per cent of the turnover recorded by the sub-sector, sector and overall turnover reprehensively.

The Insurance sub-sector followed, boosted by the activity in the shares of Intercontinental Wapic Insurance Plc and Continental Reinsurance Plc, with a turnover of 105.62 million units of shares valued at N64.55 million traded by investors in 730 deals.

According to NSE report, 10 units of NewGold Exchange Traded Products valued at N25500.00 were transacted as one deal.

The NSE-All share index surged by 366.97 points or 1.8 per cent to close the week at 21,191.22 basis points while the market capitalisation of the 187 first tier equities finished at N6.721 trillion.

The NSE-30 index rose by 24.74 points or 2.7 per cent to end the week at 972.34 points. Meanwhile both NSE-ASI and NSE-30 index dropped by 0.6 per cent and 0.8 per cent respectively.

Three out of the four sectorial indices grew last week compared with two that appreciated the previous week while the NSE consumer Gods Index surged by 1.7 per cent to close at 1,746,79 points.


Vivian-Peace Nwinaene