Despite uncertainties in the build-up to the 2023 elections as well as the scarcity of cash which affected the Nigerian economy, the Nigerian Exchange Limited (NGX) recorded listings worth N318.52 billion on its platform in three months (Q1) of 2023.
According to the exchange’s X-Compliance report, this figure spreads across its equities, fixed income, mutual funds and derivatives categories. The X-Compliance report is a transparency initiative of NGX designed to maintain market integrity and protect the investors by providing compliance-related information on all listed companies. Through the report, the NGX ensures that it provides timely information to investors to aid their capital allocation decisions and enable a proper functioning capital market.
The report stated that the exchange saw N11.23 billion in Federal Government of Nigerian bond listings h consisting FGN Savings Bonds with maturities ranging between 2024 and 2026. This was the Lagos State Government issued the only bond by a sub-sovereign entity with its N137.33 billion series 1V, 10-year 13 per cent, Fixed Rate Bonds due 2031 under its N500 billion debt issuance programme.
The corporate bond segment recorded N112.42 billion senior unsecured bond listing from Dangote Industries Funding Plc and N31.36 billion in Sukuk Issuances from Taj Bank and Family Homes under their respective Sukuk Issuance programmes.
FTN Cocoa Processors Plc and Neimeth International Pharmaceuticals Plc both did supplementary listings of N850 million and N3.68 billion of shares respectively while Africa Plus Partners Nigeria Limited also listed its mutual fund, Africa Infra Plus 1, the first Carbon Plus naira denominated fund to be listed on the Exchange, at a market value of N21.65 billion.
This means that N318.52 billion was recorded in Q1 2023. Further data obtained from the NGX’s website showed that the NGX All Share Index (ASI) returned 5.81 per cent in the same period for investors, consolidating gains made from the previous year.
Within the period, the ASI rose from 51,251.06 points (January 3, 2023) to 54,232.54 (March 31, 2023) while market capitalisation of listed companies also inched higher at N2.54 trillion to close the month of March at N29.543 trillion.
It will be recalled that Nigeria’s stock market had gained N2.48 trillion in January and February 2023, however, the month of March saw bearish sentiments pervading the local bourse amidst the activities of bargain hunters as the stock market began to react to the weak macro-economy.
This meant that investors lost about N857 billion in March. However, the Chief Executive Officer, NGX, Temi Popoola, believes that the exchange will continue to stick to its strategic goals this year.
Popoola said, “We did not have a bad start and I can assure you that we will be using listings as a vehicle for meeting strategic aspirations as the new dispensation comes in through increased advocacy and engagements”.
For their part, analysts at Cordros Capital, said that with the 2022 full year results still trickling in, investors are likely to make a re-entry as trading resumes in April.
“With the moderation in the prices of bellwether stocks this week, we expect investors to take advantage of this and make a re-entry. However, this will be dependent on positive financial results releases. In the near term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed income space.”
Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings”, they said.