Attached is the distribution results of the July 2017 Federal Government of Nigeria Savings Bond primary auction between the 3rd July-2017 (Monday) and the 7th July-2017 (Friday) with settlement date: 12th July-2017
The Nigerian Stock Exchange serves as an active secondary market for the bonds, thereby providing liquidity to retail bond owners who wish to redeem their capital before maturity.
TRW E-Trader platform’s secondary bond trading on the NGSE is now active thus you can buy/sell daily your FGN S-Bonds remotely on your desktop/laptop/smartphone. Alternative: send us a ‘FGN S-Bonds’ purchase/sales mandate via e-mails remains a normal option.
The Key Observations of the Secondary Market Bond Trading are as follows:
– Liquidity: At the moment, the most liquid FGN Saving bonds security is the 13.01% FGNSB 22-MAR-2017 with a 2-yr tenor (code: FGS2019S1). Clean price is being offered btw 95 – 100 => N950 – N1,000
– Transaction sizes: Minimum order of 1 bond note.
TRW Stockbroker Investment Recommendation:
We hope those clients that bought FGN Savings Bonds in March-2017 (FGS2019S1) received their respective 1stcoupon (interest) payments dd. 22/6/2017. If you did not get your respective sms alerts, kindly inform us accordingly asap.
Though we are in a short-term bullish Nigerian financial market environment, we maintain our advice to clients to continue to increase their fixed income allocation accordingly to meet their respective long-term investment portfolio targets thus buy to hold your respective FGN S-bonds till maturity.
Av. 91-day NTB (FGN T-bills) yield at CBN PMA (Primary Auction) was 13.97% in June-2017, higher than 13.60% in May-2017 and in Apr-2017. The forecasted average for July-2017 is 13.3%. In 1-wk-July-2017 primary auctions, CBN sold N28.7bln of 91-day NTB at 13.5%.
Caution – selling on the secondary market before maturity, can either incur capital loss or capital gain.
An investor does not have to wait for the August’ 2017 primary auctions to buy FGN S-Bonds any more. If you have not installed the TRW E-Trader Platform, simply send us a purchase mandate via e-mail.
NGSE Secondary Market Bond Trading Report:
FGS2019S1 remains the actively traded FGN S-bond. TRW Stockbrokers was active in the market again mainly as a ‘speculative’ buyer btw 82 – 83 (=> N820 – N830). Fortunately this week, there was an increased demand of > N1.7 mln weekly turnover which caused an increment in the ‘offered’ clean price to 100 (=> N1,000). Thus, a price equality btw primary & secondary markets !!!
TRW Stockbroker Transaction Fee Policy:
Fixed income trades of the bond segment of the NGSE trading platform can be subject to the following terms:
– Primary Auction: There are no charges for purchases made through the primary auction.
– Secondary Market: A transaction fee of 1% of total consideration will be charged for additional NGSE Buy / Sell transaction(s) while CSCS will charge 0.0001%;
Should you require further information, please contact us via the following channels. We will attend to it promptly.
Reception Phone(s): during working hours, Monday through Friday on the following lines: +234-17646689, +234-1-2710224, 0805-810-4210 (24 hours ), 0803-716-1440 (24 hours), 0805-6172779 (24 hours),
- Ekwueme Mike Anyadibe (080 6656 4748)
- Tochukwu Ufudo (070 6684 6097)
- Bakare Musbau (080 5616 0889)
Corporate Office: 62/64 Campbell Street (Kajola House) 4th & 5th Floor, Lagos Island, Lagos State – NIGERIA…
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .