- DMO offers two FGN bonds for subscription
The local stock market began the trading week in negative territory, with the All-Share Index declining by 0.73 percent to 97,881.75 points, and the market capitalization of listed equities falling by the same margin to N55.58 trillion, resulting in investor losses of N410.96 billion.
Despite this downturn, trading activity on the NGX showed positive momentum, with a higher number of gainers (29) compared to losers (20). Total trade value surged by 44.11 percent to N11.77 billion, the number of deals and traded volume rose by 11.71 percent and 4.36 percent, respectively, reaching 10,645 deals and 498.27 million units.
Among individual stocks, major tickers such as JBERGER, NASCON, TOTAL, OANDO, and DANGSUGAR were the top gainers, with share price increases of 10.00 percent, 10.00 percent, 9.98 percent, 9.98 percent, and 9.95 percent, respectively.
On the downside, BUACEMENT, SKYAVN, SUNUASSUR, WAPIC, and CWG led the losers’ chart with declines of 9.93 percent, 5.43 percent, 4.76 percent, 2.53 percent, and 2.38 percent, respectively.
Sectoral performance was mixed; the Oil/Gas index led with a 3.30 percent gain, driven by increases in TOTAL and ETERNA.
This was followed by the Insurance and Consumer Goods indexes which advanced by 2.05 percent and 1.00 percent, respectively. The Industrial Goods index dropped by 3.96 percent due to sell-offs in BUACEMENT, LAFARGE, and CUTIX, and the Banking Index declined slightly by 0.31 percent. At the close of the session, GTCO was the most traded stock by volume and value, with 123.92 million units worth N5.66 billion exchanged in 739 deals.
In the money market, NIBOR surged across the board as system liquidity declined further on Monday, signaling tightening liquidity conditions.
As a result, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 275 bps and 278 bps to 36.14 percent and 36.75 percent respectively.
In the Nigerian Interbank Treasury Bills market, NITTY rates declined for most maturity gauges indicating negative investor sentiment. Meanwhile, the secondary market for Nigerian Treasury Bills displayed a bullish trend, with the average yield decreasing by 0.05 percent to 23.41 percent.
Trading in the FGN bond market was mixed but leaned towards a bullish trend. Yield reductions of 54 bps, 42 bps, and 34 bps were observed in the FEB-34, JUN-53, and JUN-33 instruments, respectively.
This led to a 0.04 percent decrease in the average secondary market yield, bringing it down to 20.01 percent.
In Nigeria’s sovereign Eurobonds market, bullish sentiment was evident across the short, mid, and long segments of the yield curve, leading to a 0.05 percent decrease in the average yield to 10.44 percent.
In the official NAFEM market, the naira appreciated by 0.20 percent, closing at ₦1,570.99 per dollar, supported by the CBN’s FX auction to authorized dealer banks to boost liquidity in the foreign exchange market. Similarly, in the parallel market, the naira appreciated by 0.63 percent, ending at ₦1,585 per dollar.
DMO offers two FGN bonds for subscription
Also, the Debt Management Office has offered two Federal Government of Nigeria savings bonds for subscription at N1, 000 per unit.
The DMO in a statement on Monday in Abuja, said the first offer is a two-year FGN savings bond due on 21 August 2026, at an interest rate of 17.373 per cent per annum.
The second offer is a three-year FGN savings bond due on 21 August 2027, at an interest rate of 18.373 per cent per annum.
The Opening date for the offer is 12 August, the closing date is 16 August, and the settlement date is 21 August, while coupon settlement dates are 21 November, 21 February, 21 May and 21 August.
“They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
“Interest is payable quarterly while bullet repayment (principal sum) is on the maturity date,” the DMO said.
It assured that FGN savings bonds are backed by the full faith and credit of the FGN, and charged upon the general assets of Nigeria.
“They qualify as securities in which trustees can invest under the Trustee Investment Act,” it noted, adding that they also qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.
The Debt Management Office also added that they are listed on the Nigerian Exchange Limited, and qualify as liquid assets for liquidity ratio calculation for banks.
