February 10, 2012 /by Moses Ebosele
THE Over-The-Counter (OTC) bond market for FGN bonds in January 2012, recorded a turnover of 391.7 million units, worth N347.2 billion in 1,931 deals, against 487.004 million shares valued at N428.55 billion exchanged in 2,918 deals, in December.
At the end of transactions for the month, the most active bond when measured by turnover volume, was the 5.5 per cent FGN February 2013 (seventh FGN Bond 2013 Series 1) with a traded volume of 99.84 million units valued at N94.452 billion in 525 deals.
It was followed by 10.5 per cent FGN March 2014 (eighth FGN Bond 2014 Series 1) with traded volume of 92.5 million units, valued at N90.453 billion in 437 deals.
Also, 17 of the available 28 FGN bonds, according to the Nigerian Stock Exchange (NSE), were traded during the month, compared with 25 that were traded during the preceding month. In January 2011, the OTC market recorded turnover of 875.62 million units worth N801.134 billion in 5,431deals.
The market value of the 253 listed securities closed in January 2012 at N11.81 trillion, up by N874.842 billion or eight per cent from the N10.94 trillion recorded in December 2011.
Market capitalisation had in December 2011, increased by N299.5 billion or 2.8 per cent, while it declined in November 2011, by N339.02 billion or 3.1 per cent.
The increase in market capitalisation in January 2012 was attributed to the admission of three new securities on the Daily Official List and the rise in equity prices, according to NSE, adding that the 198 listed equities accounted for N6.585 trillion, up by N49.74 billion or 0.76 per cent from the N6.52 trillion recorded in December 2011.
Equity market capitalisation had in December 2011, increased by N239.512 billion or 3.8 per cent, while it declined in November 2011, by N349.2 billion or 5.3 per cent. The increase in equity market capitalisation in January 2012 was also attributed to increased prices of some equities.
In January 2012, five sectors recorded increased market capitalisation of between 0.1 per cent and seven per cent, while six sectors recorded declines in market capitalisation of between 0.6 per cent and 6.4 per cent, with one sector that did not record any change.
Meanwhile, the market turnover recorded transactions volume of 4.1 billion, valued at N31.76 billion, traded in 46,942 deals, against transactions volume of 6.2 billion shares, valued at N43.72 billion in 62,132 deals during December.
The NSE monthly report for January made available by NSE, explained that transactions were affected by the sustained low investors’ confidence, coupled with the seven days national strike between January 9 and 16, 2012.
“When compared with the preceding month (December), in terms of volume traded, value traded and number of deals, it declined by 34 per cent, 27 per cent and 24 per cent, respectively.
“In December 2011, volume traded and value traded had increased by 20.8 per cent and 7.42 per cent, while the number of transactions declined by 12 per cent.
“Part of transactions in January 2012 was the 21,870 units of NewGold Exchange Traded Fund valued at N57.9 million, traded in 41 deals. There were no transactions through the stock market in the Federal Government development stocks, sub-national bonds, industrial loans and preference stocks sectors.
“Trading days in January were 21 while it was 20 in December 2011. Consequently, the transactions during January translated to an average daily transaction of 194.7 million valued at N1.512 billion traded in 2,235 deals compared with 309.2 million shares valued at N2.2 billion traded in 3,107 deals during December 2011,” said NSE
At the end of the month of January 2012, the Financial Services sector was the most active when measured by turnover volume, accounting for 2.91 billion shares (71.2 per cent), valued at N14.151 billion (45 per cent), in 26,172 deals (56 per cent).
The Consumer Goods sector was second with transactions volume of 710.32 million, valued at N10.321 billion traded in 9,842 deals. Both sectors accounted for 3.621 billion shares (88.6 per cent), valued at N24.472 billion (77.1 per cent), traded in 36,014 deals (77per cent).
The Services sector was third with transactions volume of 103.025 million shares, valued at N140.2 million, traded in 1,903 deals. The three leading sectors accounted for 91 per cent of the traded volume, 77.5 per cent of the value traded and 81 per cent of the number of transactions.
The remaining nine sectors accounted for nine per cent, 22.5 per cent and 19 per cent of the volume, value traded and number of deals, respectively.