NSE Promises more Access to Capital as DMO Lists N100bn Sukuk Bond

The Nigerian Stock Exchange (NSE) has restated its commitment to enhancing access to capital for the federal government and the private sector, saying it is key to national economic growth.

According to the Head, Trading Business Division, NSE, Mr. Jude Chiemeka, stated this during the listing of second N100 billion, 7-year Federal Government of Nigeria (FBN) Sukuk due 2025 bond on the NSE by the Debt Management Office (DMO).

Chiemeka further revealed that, “At the exchange, we believe enhancing access to capital for the federal government and the private sector is key to national economic growth. This is the motivation behind our commitment to promote and support the growth of the debt market in Nigeria. Our efforts are geared towards expanding the NSE’s position as the multi-asset hub, creating ample possibilities for our key stakeholders, while delivering a transparent and liquid market to investors”.

He said the emerging and frontier markets could expect greater traction in their quest to continually unlock dormant pools of capital.

“This listing is particularly important in scaling development for these economies characterised by daunting growth in infrastructure and also have a strong bias for Islamic Finance,” he said.

Sukuk bonds are structured to generate returns to ethical investors without infringing on the Islamic principles which forbid interest payments. It represents an ownership interest in the asset to be financed rather than in a debt obligation.

DMO stressed that, the aim of the FGN Sukuk is to promote financial inclusion and deepen of the investor base for FGN securities. It will be deployed to financing infrastructure, in keeping with the government’s commitment to bridging the infrastructural gap across the country.

In Addition, the NSE All-Share Index shed 0.20 per cent to 28,088.74, while market capitlisation lost N27.4 billion to N13.7 trillion, making a closed negative stock market.

However, activity level improved as volume and value traded rose by 16.7 per cent and 20.6 per cent to 157.7 million shares units and N2.5 billion respectively. The top traded stocks by volume were GTBank Plc (33.6 million shares), UBA (30.1 million shares) and Zenith Bank Plc (22.9 million shares ) while the leading stocks by value were GTBank Plc (N971.4 million), Zenith Bank Plc (N428.1 million) and MTN Nigeria Communications Plc (N331.1 million).

Performance across sectors was mixed as three of five indices tracked recorded gains. The NSE Oil & Gas Index led the gainers with a gain of 4.5 per cent. The NSE Consumer Goods Index trailed with 0.3 per cent, while the NSE Insurance Index gained 0.7 per cent.