FGN Bonds Record Drop In Turnover

The over-the-counter (OTC) market for Federal Government of Nigeria (FGN) Bonds recorded an all-low turnover of 248.9 million units worth N243.41 million in 1,940 deals at the end of the week.

This is in contrast to a total of 332.8 million units valued at N317.95 million that were traded in 2,864 deals in the preceding week.

Our correspondent reports that the most active bond (measured by turnover volume) remained the 10.00 per cent FGN July 2030 with a traded volume of 44.9 million units valued at N37.78 million in 383 deals.

This was followed by the 10.5 per cent FGN May 2012 with a traded volume of 43.3 million units valued at N46.65 million in 388 deals.

Seventeen of the available 36 FGN Bonds were traded during the week, compared with 11 in the preceding week.

In another development, AP, Sovereign Trust Insurance and other quoted companies presented their audited and unaudited financial reports to the management of the Nigerian Stock Exchange (NSE).

Chellarams, in its audited report for the year ended March 31, 2010, shows a turnover of N17.82 million, as against N14.39 million in the corresponding period of 2009.

Profit after tax and extra-ordinary items stood at N417.93 million, compared with 2009’s loss after tax and extra-ordinary items of N338.93 million.

It recorded a Net Assets Value N2.75 million, compared with N2.34 million recorded in 2009.

Chellarams’ Board of Directors is recommending a dividend of N0.08 per share.

The audited report of African Petroleum (AP) for the year ended December 31, 2009 shows a turnover of N159.86 million, as against N153.06 million in 2008.

Loss after tax stood at N9.15 million, compared with profit after tax of N5.103 million in 2008, while the Net Assets Value stood at N33.08 million, in contrast with N6.69 million in 2008.

Sovereign Trust Insurance, in its audited report for the year ended December 31, 2009, indicates a Gross Premium of N4.44 million, as against N3.81 million in the corresponding period of 2008.

It recorded a profit after tax of N4.2 million, in contrast with N360.8 million in 2008. The Net Assets Value stood at N3.43 million, compared with N3.61 million in 2008.

DAAR Communications’ audited report for the year ended Dec.31, 2009 shows a turnover of N3.84 million, as against N3.67 million in the corresponding period of 2008.

Loss after tax stood at N3.54 million, compared with N381.5 million in 2008. The Net Assets Value stood at N13.98 million, compared with N17.53 million in 2008.

Tourist Company of Nigeria recorded a turnover of N1.67 million in the audited report for the year ended Dec. 31, 2009, as against N1.48 million in the corresponding period of 2008.

Loss after tax (payment) stood at N680.7 million, against loss after tax (rebate) of N682.9 million in 2008. The Net Liability Value stood at N559.03 million, compared with Net Assets Value of N121.73 million in 2008.

Also in the week, UBA notified the Nigerian Stock Exchange (NSE) that it had successfully raised a total of N20 billion in Tier 2 capital through the issue of subordinated unsecured 7-year debt.

The bank said that the additional funds would enable it to strengthen its capital base, while enhancing its Capital Adequacy Ratio.

UBA also said that the funds would enable it to expand its distribution channels and IT infrastructure, as well as grow its risk assets, with a view to enhancing its incomes.

Our correspondent reports that the N20 billion-bond is the first in the N400 billion medium-term bond issuance programme approved by the bank’s shareholders last year.