…As SEC commends DMO on N100bn Sukuk
Stories by Chinenye Anuforo
Against the backdrop of the renewed pressure on oil prices, the Nigerian stock market yesterday extended losses as its All Share Index declined 1.6 per cent at the close of trade to settle at 32,928.44 points, taking Year-To-Date return of the benchmark index to 22.5 per ceent.
The market capitalisation declined N190 billion to close at N11.4 trillion just as activity level was mixed with volume traded improveding 0.2 per cent to 509.8 million while value traded dipped 21.3 per cent to N5 billion respectively.
Analysts say the bearish performance was broadly due to losses in bellwether Consumer Goods and Banking stocks including Nigerian Breweries, Zenith, ETI and Guaranty Trust Bank.
In another development, the Securities and Exchange Commission (SEC) has commended the Debt Management Office (DMO) on arrangements to issue the maiden N100 billion Sukuk in the Nigerian Capital Market.
In a statement by the SEC “This is a major milestone for Nigeria as it will catalyze the development of non-interest capital market products.
The issuance of this Sukuk follows diligent advocacy efforts from the Securities and Exchange Commission (SEC) on the need to issue the instrument in order to serve as an alternative product for investors”.
Sukuk, the non-interest equivalent of bonds, is becoming increasingly attractive as a preferred option for funding infrastructure development and indeed economic growth across the globe. Several countries across diverse continents have increasingly issued non-interest financial instruments to fund their infrastructure deficit. The trend is also fast gaining pace in Africa, with notable Sukuk issuances by South Africa, Senegal, and the Government of Cote d’Ivoire.