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Investors stake N9.8m on bonds, ETPs

By on January 6, 2015

Federal Government bonds and Exchange Traded Products worth N9.853m were traded on the floor of the Nigerian Stock Exchange in three trading sessions last week.

The Federal Government had declared Thursday and Friday public holidays to allow Nigerians to celebrate the New Year and Eid-el-Maloud, respectively.

Data provided by the NSE showed that 3,720 units of FGN bonds valued at N3.904m were traded in seven deals last week in contrast to the preceding during which no trade was recorded in bonds.

Specifically, 3,020 units of the FG9B2017S2 bond worth N3.162m were exchanged by investors in five deals, while 700 units of the FG102016S1 bond valued at N741,742 were traded in two deals.

On the other hand, the NSE data showed that 110,169 units of ETPs valued at N5.949m were traded in 22 deals last week, compared with a total of 36,241 units valued at N627,306 traded a week earlier in 15 deals.

A breakdown of the ETP trades showed that the Stanbic IBTC ETF 30, which had its units admitted for trading on the Exchange on Tuesday, was the most traded ETP.

According to the Exchange, 50,000 units of the ETF 30 worth N5m exchanged hands in seven deals.

Also, 50,130 units of the Vetiva Griffin 30 ETF valued at N782,078 were traded in eight deals, while 10,010 units of the Lotus Halal ETP worth N105,556 and 29 units of the NEWGOLD ETP worth N61,001 were traded in four and three deals, respectively.

There has been an increase in calls for more ETPs to be listed on the Exchange as retail investors could benefit greatly from it.

At the listing of the Stanbic IBTC ETF 30, the Chief Executive Officer, Stanbic IBTC Asset Management, the fund manager, Mr. Olumide Oyetan, had said, “An Exchange Traded Fund is an investment vehicle that tracks an index, a basket of assets, or a commodity but trades like regular shares on a stock exchange.

“Unlike shares and mutual funds, the ETFs will trade continuously all day long and allow investors to lock in a price for the underlying stocks immediately, rather than being bought and sold based on end-of-day prices.”

According to him, the listing of Stanbic IBTC ETF 30 is in line with the company’s goal to develop the market and calls for more of such products.

“The opening of the Stanbic IBTC ETF 30 is a direct response to increased investor demand for passive investment strategies that will deliver the market return for the index being tracked, which in this case is the NSE 30 of the Nigerian Stock Exchange,” he had said.

 

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