By Habibat Aliu
Buying interests in Guaranty Trust Holding Company (GTCO) and eight stocks aided the Nigerian Exchange Limited (NGX) to sustain positive sentiments yesterday, as market capitalisation rose further by N17 billion.
At the close of trading yesterday, the All Share Index (ASI) rose by 31.43 absolute points, representing a gain of 0.06 per cent to close at 54,936.11 points. Also, investors gained N17 billion in value as market capitalisation went up to N29.927 trillion.
The upturn was impacted by gains recorded in medium and large capicapitalizedcks, amongst which are; Guaranty Trust Holding Company (GTCO), Nigerian Exchange Group, Fidelity Bank, FBN Holdings (FBNH), and Transnational Corporation (Transcorp).
Analysts at Afrinvest Limited said: “In the penultimate trading session, we expect muted performance on the bourse, on the back of weak investor sentiment.”
As measured by market breadth, market sentiment was negative, as 14 stocks lost relative to nine gainers. GTCO and Wapic Insurance recorded the highest price gain of 2.44 percent each to close at N25.50 and 42 kobo.
Linkage Assurance followed with a gain of 2.22 per cent to close at 46 kobos, per share. Lasaco Assurance rose by 2.04 per cent to close at N1.00, while Transcorp appreciated by 1.56 per cent to close at N1.30, per share.
Fidelity Bank gained 1.35 percent to close at N5.27 kobo while FBN Holdings garnered 46 per cent to close at N10.95 kobo. NGXGroup appreciated by 36 kobo to close at N28. First City Monument Bank also advanced by 25 per cent to close at N4.07 kobo.
On the other hand, NCR Nigeria led the losers’ chart by 9.69 per cent to close at N2.61, per share. FTN Cocoa processors followed with a decline of 6.90 per cent to close at 27 kobo, while Japaul Gold & Ventures shed 6.67 per cent to close at 28 kobo, per share.
Cutix lost 4.95 per cent to close at N2.11, while Consolidated Hallmark Insurance shed 4.62 per cent to close at 62 kobo, per share. Academy Press lost four per cent to close at N1.20 kobo. Livestock Feeds shed 2.91 per cent to close at N1.
United Capital depreciated by 2.46 per cent to close at N11.90 kobo. Honeywell Flourmills dropped 2.22 per cent to close at N2.20 kobo. CWG declined by 2.02 per cent to close at 97 kobo.
African Prudential lost 1.69 per cent to close at N5.80 kobo. Wema Bank depreciated by 1.23 per cent to close at N4. Vitafoam also fell by 1.06 per cent to close at N18.60 kobo.
The total volume traded rose by 5.0 per cent to 134.151 million units, valued at N1.330 billion, and exchanged in 2,479 deals. Transactions in the shares of Transcorp topped the activity chart with 28.122 million shares valued at N35.932 million.
United Bank for Africa followed with 21.232 million shares worth N170.415 million, while Courteville Business Solutions traded 19.123 million shares valued at N8.608 million. GTCO traded 13.551 million shares valued at N336.904 million, while FBNH transacted 8.126 million shares worth N88.998 million.
FCMB Group issues N20.68bn bond
FCMB Group Plc has announced the issuance of N20.68 billion perpetual 16 per cent fixed rate resettable NC5.25 additional tier 1 capital subordinated bond as part of its N300bn debt issuance programme.
In a corporate notice signed by the Company Secretary, Olufunmilayo Adedibu, to the Nigerian Exchange Limited, the firm said the N20.68 billion bond was issued at a clearing coupon of 16.0 per cent per annum.
The group said that the AT1 issuance was the first non-Sharia local currency AT1 instrument issued in Nigeria and the group’s maiden issuance of its N300bn funding programme in the Nigerian capital markets.
For this instrument, the book build commenced on January 24, 2023, and closed on February 3, 2023, and the group said that the offer had received active participation from corporates, other financial institutions, trustees and high net-worth individuals.
The statement read, “The net proceeds from the Series I Bond will be invested in the Group’s banking subsidiary – First City Monument Bank Limited (“the bank”) – enhancing the bank’s Tier 1 and total capital adequacy ratios, and enabling the Group and the bank to expand its support for the growth and development of the Nigerian economy.”
Commenting on the Series I Bond issuance, the Group Chief Executive of FCMB Group Plc, Ladi Balogun, said, “The innovative structure of a perpetual, income yielding, bond that qualifies as tier 1 capital, – a first of its kind in the domestic Capital Markets – achieves three objectives for our investors: it is non-dilutive for existing shareholders; creates capacity for potentially improved earnings per share and dividends per share; and provides an attractive income stream for investors in this instrument.
“We are also pleased to have been able to support our largest banking subsidiary towards the attainment of its growth, risk management and strategic objectives with this investment.”
The Managing Director of First City Monument Bank Limited, Yemisi Edun, said, “In addition to strengthening the bank’s capital base which will comply with the forthcoming application of Basel III capital requirements, the AT-1 bond will enable the bank to finance incremental term lending in priority sectors.”