Kayode Ekundayo
1 July 2009
Lagos — Trading activities on the floor of the market closed on bullish note with market capitalization gaining N139.633 billion to close at N6.125 trillion.
Last week the market shed N706 billion, resulting from comments by Central Bank that banks' books would be audited to ascertain the level of their exposure in the capital market through margin loans.
The market had opened yesterday with N5.986 trillion and all share index of 26,249.28 points but by the time it closed the market had gained N139.633 billion, about 2.3 per cent, while all share index also gained 612.27, about 2.3 per cent to close at 26,861.55 point level
A total of 549.046 million shares worth N4.107 billion in 10,595 deals were transacted in the market on Tuesday. Trading activities in the banking sub sector drive the market with 316.485 million shares valued at N3.111 billion exchanged in 5,803 deals
Activities in the shares of United Bank for Africa drive the sub sector with a total of 44.897 million shares worth N605.728 million exchanged in 569 deals
Insurance sub sector followed with turnover of 106.174 million shares worth N102.701 million exchanged in 1,150 deals. Activities in the shares of UNIC Insurance drive the sector with 32.527 million shares worth N16.377 million exchanged in 42 deals.
Nestle led others on the gainers' table with N6.99 per share gain to close at N189.99 per share. This was followed by AP N5.23 to close at N110.00, Oando N4.40 to close N92.45 per share.
On the losers' table, Conoil led others with N3.07 to close at N58.43 per share, BCC N1.80 to close at N43.00 per share, Glaxosmith N0.90 to close at N17.20 per share
Meanwhile, Imo State Governor Ikedi Ohakim is soliciting support for the state's N18.5 billion bonds.
The Imo State bonds which attract 15.5 per cent fixed rate at N1,000 per unit would mature in 2016. The state's application to raise the N18.5 billion has been endorsed by the Quotation Committee of The Exchange's Council.
The governor who visited the exchange yesterday explained that the fund raising was to finance the state's infrastructure development aimed at providing enabling environment for business to thrive.
Mr. Ohakim, said the rebound of the stock market without any bailout "is an indication that the market is very strong and resilient".
He explained that the proceeds of the bonds would be used for three main projects. A sum of N1.303 billion or 7.04 per cent would be used to part finance the rehabilitation of water scheme; N3.772 billion, representing 20.39 per cent of the offer proceed, would be used to part finance the rehabilitation and construction of critical roads while the remaining N12.5 billion representing 67.57 per cent of the proceeds would be spent on financing Imo state Government's Equity Investment in Imo Wonder Lake and Conference Centre, Oguta, respectively.
President of the Exchange, Dr. Oba Otudeko commended him and his cabinet for the wisdom in taking advantage of the capital market to finance beneficial projects in the state.
Otudeko also noted that the clamour for bond issues in the country today is testimonial of the viability of the capital market as an avenue for fresh funds for economic development. He expressed confidence in the success of the offer.
The Issuing Houses to the offer are BGL Securities Limited, UBA Capital (Africa) Limited, Future View Financial Services Limited and Stanbic IBTC Bank Plc.
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