ALERT: 5.17% of FCMB’s Outstanding Shares Traded on NGX Today
At the close of trading today, a total volume of 1.02bn units of shares of FCMB Group Plc valued at N3.84bn were traded.
This represents 79.97% of the total market volumes of 1.15bn while the value of FCMB shares traded represents 48.48% of the total market value traded which was put at N7.92bn.
Furthermore, the volume traded represents 5.17% of FCMB’s total shares outstanding put at 19.80bn shares while the value of the shares traded also represents 5.54% of FCMB market capitalization of N71.29bn as of March 14, 2022.
A comparison of FCMB today’s volume traded with the previous day’s traded volume revealed that it increased by 10%.
The share price of FCMB moved up by a tick size of +2.86% to close at N3.60k at the close of trading today.
Year-to-date, FCMB shares have moved up by +20.81% as against +11.03% YTD return recorded by the NGXASI, outperforming the broad market index by +9.78%.
You will recall that similar trading happened on Friday, March 11th, 2022.
Findings from a market stakeholder as of Friday March 11th, 2022 stated that the trading is between a local buyer and seller. We expect that today’s trading may toe the same line.
Chart: 8 Days Share Price Movement and Volume Traded
Source: NSE
Table: 8 Days Share Price Movement and Volume Traded
| Date | Price (Naira) | Volume |
| 14-Mar-22 | 3.6 | 1,024,056,551 |
| 11-Mar-22 | 3.5 | 932,889,307.00 |
| 10-Mar-22 | 3.45 | 15,125,490.00 |
| 9-Mar-22 | 3.42 | 3,986,414.00 |
| 8-Mar-22 | 3.42 | 5,028,839.00 |
| 7-Mar-22 | 3.41 | 5,679,335.00 |
| 4-Mar-22 | 3.41 | 25,022,784.00 |
| 3-Mar-22 | 3.3 | 6,502,191.00 |
Source: NSE
Investors Lose N4.75bn as NGXASI Dips Marginally by -0.02% to Open the Week Negative
Equities market closed on a negative note, as NGXASI depreciated by -0.02% to close at 47,428.67 basis points as against +0.16% appreciation recorded previously. Its Year-to-Date (YTD) return currently stands at +11.03%.
Market breadth closed negative as RTBRISCOE led 19 Gainers as against 22 Losers topped by CWG at the end of today’s session an unimproved performance when compared with previous outlook.
Market turnover closed positive as volume moved up by +11.00% as against +341.02% uptick recorded in the previous session. FCMB, FIDELITYBK and ZENITHBANK were the most active to boost market turnover. FCMB and MTNN topped market value list.
REDSTAREX leads the list of active stocks that recorded impressive volume spike at the end of today’s session.
Bullish Turn as Secondary Market Rate Declined 2bp WoW to Close at 3.42%
Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market sustained its bullish run which was supported by the liquidity boost on Wednesday (which stood at N348.8bn long) as buying interest was recorded on medium tenured bills. Average yields declined 2bps W-o-W from 3.44% to 3.42% as investors cherry-picked relatively attractive maturities across the curve.
Specifically, demand was recorded on the medium-dated maturities, which declined 5bps W-o-W while the short and long-dated maturities gained by 4bps and 2bps respectively with the most demand recorded on the 11-Aug-22 (-42bps W-o-W) bill.
At last Wednesday’s Primary Market Auction (“PMA”), the central bank’s total offer of N94.00bn was met with strong demand, recording a subscription ratio of 5.1x (total subscription: N482.9bn). The 364-Day instrument maintained significant demand levels with a bid-to-cover ratio of 2.1x (subscription: N437.8bn). Furthermore, stop rates on the long-term offer declined 25bps to settle at 4.10% (from 4.35% at the previous auction) while rates on the short- and mid-term offers declined by 49bps and 2bps with a bid-to-cover ratio of 1.9x each.
| Auction Date | 09-Mar-22 | 09-Mar-22 | 09-Mar-22 |
| Allotment Date | 10-Mar-22 | 10-Mar-22 | 10-Mar-22 |
| Maturity Date | 09-Jun-22 | 08-Sep-22 | 09-Mar-23 |
| Tenor | 91-Day | 182-Day | 364-Day |
| Offer (N) | 1,550,802,000.00 | 11,883,004,000.00 | 80,570,597,000.00 |
| Subscription (N) | 4,404,282,000.00 | 40,654,628,000.00 | 437,839,424,000.00 |
| Allotment (N) | 2,323,500,000.00 | 21,287,627,000.00 | 212,920,474,000.00 |
| Range of Bids (%): | 1.7500 – 6.0000 | 3.0000 – 7.0000 | 3.8450 – 6.5400 |
| Previous stop rate (%): | 2.24 | 3.30 | 4.35 |
| Stop Rates (%): | 1.75 | 3.28 | 4.10 |
| Allotment Ratio | 0.5x | 0.5x | 0.5x |
| Subscription Ratio | 2.8x | 3.4x | 5.4x |
This week, we anticipate a sustained bullish trend, albeit with minimal activities as unmet bids at the PMA are channeled into the secondary market. We also expect Open Market Operations (“OMO”) maturity of N58.04bn to hit the market, boosting financial system liquidity which closed N112.9bn short on Friday (11-Mar-22). Thus, we maintain our advice that investors position in relatively attractive instruments across the market while looking out for other investment opportunities like commercial papers.
Please see indicative secondary market NT-Bills rates below:
| Maturity | Tenor (Days) | Net Rate (%) p.a. | Yield (%) p.a. |
| 28-Apr-22 | 45 | 3.01 | 3.02 |
| 26-May-22 | 73 | 3.91 | 3.94 |
| 30-Jun-22 | 108 | 4.70 | 4.77 |
| 14-Jul-22 | 122 | 5.12 | 5.21 |
| 11-Aug-22 | 150 | 5.30 | 5.42 |
| 13-Oct-22 | 213 | 5.95 | 6.16 |
FGN Bonds Update: Bullish bias as Average Yield declined 17bps W-o-W to 10.43%
Last week, the FGN bonds secondary market furthered its bullish run into another week on the back of the buoyant system liquidity which stood at N348.0bn on Wednesday and as market players continue to position in relatively attractive offers across the curve.
The average yield across all tenors declined by 17bps W-o-W to settle at 10.43% from 10.61% the previous week, with the medium-term maturities enjoying the most demand. Particularly, the 27-Jan-22, 23-Jul-30, and 27-Mar-35 maturities witnessed the most buying interest, declining 154bps, 45bps, and 33bps W-o-W respectively.
This week, we expect improved activity in the secondary market as investors adjust their portfolios and look to invest coupon payments worth N719.9bn into relatively attractive offers in the market. Thus, we advise investors to take position in maturities across all segments in the market.
Please see indicative secondary market bonds rates below:
| Maturity | Tenor (Years) | Yield (%) | Coupon (%) | Implied Price (N) |
| Apr-23 | 2 | 6.60 | 12.75 | 106.53 |
| Mar-24 | 3 | 6.80 | 14.20 | 113.62 |
| Mar-25 | 4 | 9.30 | 13.53 | 110.94 |
| Jan-26 | 5 | 9.40 | 12.50 | 109.82 |
| Mar-27 | 6 | 9.45 | 16.29 | 126.81 |
| Feb-28 | 7 | 9.40 | 13.98 | 120.50 |
| Jul-34 | 13 | 11.00 | 12.15 | 107.63 |
| Mar-36 | 15 | 11.08 | 12.40 | 109.28 |
| Apr-37 | 16 | 11.25 | 16.25 | 135.89 |
| Apr-49 | 28 | 11.90 | 14.80 | 123.27 |
Power Generation and Ongoing Load Shedding Nationwide
The Transmission Company of Nigeria wishes to notify consumers of electricity that the current load shedding being experienced nationwide is as a result of very low power generation by the Generation Companies (GENCOs) for TCN to wheel through the transmission grid to distribution companies nationwide.
The media has been awash with reports that TCN has reduced the load allocation to distribution companies. That information is incorrect. The correct position is that TCN can only transmit the quantum of power generated by GenCos through the national grid to distribution load centres nationwide.
For clarity, TCN does not generate electricity and therefore can only transport cumulative generation from all the generation companies nationwide to distribution load centres. The distribution companies are responsible for end-users consumption. TCN allocates power to distribution companies based on approved percentage (formula approved by NERC), of the total generation available per hour or on day-ahead nomination.
Presently, the cumulative generation nationwide is low and generation companies have attributed this to several factors including poor gas supply, fault in generating units of generating companies, scheduled and unscheduled maintenance, all of which have caused most power generating companies to limit their generation, and sometimes not generate at all.
A summary of the power generating profiles in the last two months, for instance, clearly shows that fourteen (14) gas-powered generating stations were either not generating at all or had limited generation at various times within the period, further depleting the quantum of power generation available for transmission into the grid on a daily basis. Power generating stations in this category include; Omotosho units 5 & 6, Olorunsogo units 3, 4 & 6, Omoku units 3 & 6, Omotosho NIPP units 3 & 4, Delta units 15, 17, and 18, Afam VI units 11 & 12, Olorunsogo NIPP unit 3, Ihovbor NIPP unit 2, Sapele Steam unit 3, Sapele NIPP unit 1, Odukpani NIPP units 1 & 3, and Okpai units 11, 12 & 18.
Also, within the same period, Jebba Hydro and Shiroro Power Generating Stations were either out or had limited generation, causing additional loss of 232MW from the grid, while other power generating plants such as Omotosho units 3&4, Olorunsogo units 1, Delta units 10 &20, Afam VI unit 13, Ihovbor NIPP units 4, Geregu NIPP units 22&23 and Odukpani NIPP units 2, 4 & 5, have also been out either on fault or for scheduled maintenance, causing a further loss of about 3,180MW from the grid.
A combination of the above scenarios have persisted and the total effect on the grid is persistent low generation, which TCN Operators have had to strive to dispatch in a way that will not jeopardize the stability of the grid.
More recently, from the 1st to 4th of March, 2022, there was generation shortfall due to water management in Shiroro and Jebba hydro with the loss of 307MW and 125MW respectively from both stations. Within the same period, there were fault and technical problems in Egbin, causing 514MW shortfall and in Geregu causing 230MW shortfall, while reported fault at Alaoji NIPP reduced generation from the substation by 263MW.
Gas constraint alone in Olorunsogo gas generating plant reduced generation from the station by 104MW, in the same vein, Omotosho gas lost 102MW and Sapele NIPP lost 263MW. In Omotosho NIPP, there was generation shortfall of 233MW and in Omoku a shortfall of 112MW. Two units in Okpai have limited generation due to technical problems causing a 204MW drop in generation and in Afam VI 511MW drop in generation.
Gas constraint and fault in Olorunsogo NIPP reduced generation by 240MW, Geregu NIPP by 435MW, and Ihovbor by 142MW. Also, due to gas pipeline pigging, Odukpani NIPP was SHUT DOWN which caused a reduction of generation by 575MW.
TCN further reiterates that a combination of issues ranging from gas constraints, fault, and technical problems within generating plants caused persistent low generation and consequently low load allocation to Distribution Companies nationwide. This is based on the fact that TCN can only transmit what is being generated by GenCos and presently they are all generating below capacity.
It is important to note that except cumulative power generation increases considerably for TCN to transmit to distribution companies nationwide, TCN will be left with no choice than to continue to load shed. We will however continue to work hard to ensure the efficient allocation of the total load generated by power generating stations into the grid, bearing in mind the need to ensure that the national grid is stable in spite of the challenges posed by insufficient load on the transmission grid.
Wema Bank Plc Shares Placed on Full Suspension in Preparation for Share Reconstruction
Trading in the shares of Wema Bank Plc (the Bank) was suspended Tuesday, 8 March 2022.
The suspension is necessary to prevent trading in the shares of the Bank in preparation for the share reconstruction of the Bank’s issued and fully paid shares from 38,574,466,082 ordinary shares of 50 Kobo each to 12,858,155,360 ordinary shares of 50 Kobo each in the ratio of one (1) for every three (3) shares held.
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