BUA Cement, other laggards cause market’s 0.66% dip

…DMO offers 2 years, 3 years savings bonds

…Unitholders of NIDF to get special distribution of N6.55 per unit

Nigeria’s equities market decreased by 0.66percent on Monday, no thanks to investors who sold mostly shares of BUA Cement which led the league of laggards that caused the market’s southward close.

Read also: BUA Cement non-core earnings surge 311% on insurance claims

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and its equities market capitalisation decreased from preceding trading day’s 71,419.87 points and N39.082 trillion respectively to 70,946.83 points and N38.823trilllion.

Stocks value decreased by N259billion at the close of trading. The market’s year-to-date (ytd) return stood lower at 38.43percent.

The share price of BUA Cement decreased from N104 to N93.60, shedding N10.40 or 10percent, CWG was also down from N7.20 to N6.66, down by 54kobo or 7.50percent, while UPDC dipped from N1.26 to N1.17, losing 9kobo or 7.14percent.

“Looking into this week, we maintain our expectations for mixed sentiments toward the equities market, given that the RSI is currently trending above the overbought region, with some investors projected to continue booking some profit; albeit mild.

“However, as witnessed last week, we still see sustained buy interest toward the Banks and other fundamentally sound stocks with strong Q3-2023 performances,” said research analysts at Lagos-based United Capital in their December 4 note.

Universal Insurance, Transcorp, GTCO, Unity Bank and UBA were actively traded stocks as investors in 6,433 deals exchanged 358,527,122 shares valued at N7.100billion.

The Debt Management Office (DMO) on behalf of the Federal Government of Nigeria is offering for subscription, FGN Savings Bond due December 13, 2025 and December 13, 2026.

The 2 years and 3 years savings bond offer closes on December 8. They are offered at interest rates of 12.287percent and 13.287percent per annum.

The Investment Committee of the Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) on Monday announced that as a result of the positive impact of the sale of an asset, the Committee approved a Special Distribution from the sale proceeds to the Fund’s Unitholders.

Read also: BUA Cement, other stocks halt market rally

The Special Distribution is N6.55 per unit less withholding tax where applicable. The Special Distribution is payable on December 15, 2023 to Unitholders whose names are in the Register of Unitholders as at the Qualification Date of December 11, 2023.

NIDF will continue to pay quarterly distributions and the next quarterly distribution in early January 2024 will be for the quarter ending December 31, 2023.