Nigeria’s stock market opened this week on a negative note, sustaining the bearish trend seen last week.
The market’s benchmark indicator decreased by 1.08percent while the record positive return seen this year decreased to 6.30percent.
All sectoral indicators closed in the red. The All Share Index (ASI) decreased to 28,533.40 points from 28,843.53 points while the value of listed equities on the Nigerian Bourse decreased from N14.857trillion to N14.697trillion, losing N160billion.
Forte Oil Plc recorded the largest loss after its share price dropped from N20.6 to N18.55, losing N2.05 or 9.95percent, while Julius Berger Nigeria Plc followed, from N22.5 to N21.2, losing N1.3 or 5.78percent. UPDC REIT increased most from N3.1 to N3.35, adding 25kobo or 8.06percent, followed by UBN which advanced from N5.9 to N6, adding 10kobo or 1.69percent.
In 4,752 deals, equity dealers exchanged 251,591,615 units valued at N3.152billion. Zenith, GTB, FCMB, UBA, and FBN Holdings were actively traded stocks.
Market watchers expect this trend to continue into Tuesday trading session.
In another market development, the subscription for Federal Government of Nigeria savings bonds opened on Monday February 3, 2020.
The 2-year FGN Savings Bond due February 12, 2022 has coupon rate of 5.91percent while the 3-year FGN Savings Bond due February 12, 2023 has coupon rate of 6.91percent.
These bonds are tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
The subscription period for the 2 and 3 years tenored bonds runs from 8am on Monday February 3, 2020 till 12 noon on Friday February 7, 2020.
The Savings Bonds will have most of the features of the existing FGN Bond plus other features/benefits to the bondholder.
It will be backed by the full faith of the Federal Government of Nigeria and is therefore deemed risk free.
Iheanyi Nwachukwu
