The Nigerian Exchange Limited (NGX) has added another financial instrument to its trading platform with the listing of the AVA Infrastructure Series 1 Fund.

Valued at N4.08 billion, this closed-end fund is a step towards addressing Nigeria’s infrastructure gaps.

The AVA Infrastructure Series 1 Fund, comprising 4,075 units, debuted on the Main Board of the NGX at a unit price of N1 million.

As a naira-denominated unit trust scheme, it presents investors with an opportunity to participate in strategic investments aimed at bolstering the country’s infrastructure sectors.

This listing, facilitated by AVA Global Asset Managers Limited, signifies a concerted effort to channel institutional capital into critical infrastructure projects.

With Nigeria facing persistent challenges in areas like power, telecommunications, and agribusiness infrastructure, the fund’s objective is to provide debt financing to support such ventures.

Efe Shaire, Managing Director of AVA Global Asset Managers, highlighted the fund’s mission to strategically allocate private financing to projects that promise stable cash flows and long-term viability.

By focusing on initiatives vital to economic and social development, the fund aims to deliver consistent and reliable income to its unit holders.

The AVA Infrastructure Series 1 Fund is part of a broader initiative to encourage innovation and investment in key sectors. It seeks to support projects that offer essential services and contribute to sustainable economic growth.

This listing comes after AVA Global Asset Managers received approval from the Securities and Exchange Commission earlier in the year for a N200 billion AVA Infrastructure Fund Programme. The successful debut of the AVA Infrastructure Series 1 Fund on the NGX platform underscores the growing interest in infrastructure investment and the potential for private capital to address Nigeria’s pressing development needs.

Investors now have the opportunity to participate in this landmark initiative, contributing to the country’s infrastructure development while potentially earning attractive returns on their investment. As Nigeria continues to prioritize infrastructure improvement, funds like AVA Infrastructure Series 1 play a crucial role in driving progress and fostering economic resilience.

The Nigerian equities market declined by 1.36% last week, largely driven by losses incurred by prominent companies like PZ Cussons and Secure Electronic Technology.

The All-Share Index depreciated to 98,233.76 points while market capitalization shed 1.35% to close the week at N55.56 trillion.

PZ Cussons, a leading consumer goods company, experienced a significant setback, plunging by 26.97%.

Similarly, Secure Electronic Technology, known for its contributions to Nigeria’s electronic security sector, saw a notable decline of 16.95%. These losses, among others, contributed to the overall bearish sentiment in the market.

On the flip side, amidst the downturn, some equities managed to buck the trend and recorded gains.

Tantalizers, a prominent fast-food chain, led the pack with a remarkable surge of 27.78%. FTN Cocoa Processors and Presco followed suit, registering gains of 20% and 15.31%, respectively.

The trading volume and value also saw an uptick compared to the previous week. Investors traded 2.187 billion shares worth N50.667 billion in 45,277 deals, reflecting increased market activity.

The financial services industry emerged as the most active sector, contributing significantly to both volume and value of trades.

The United Bank for Africa Plc, Nigerian Breweries Plc, and Access Holdings Plc emerged as the top three traded stocks, collectively accounting for a significant portion of the total equity turnover volume and value.

Their performance underscored investor interest in key players across various sectors despite the prevailing market downturn.

This decline in Nigerian equities comes amidst broader economic challenges facing the country, including inflationary pressures, currency fluctuations, and lingering effects of the COVID-19 pandemic.

Also, uncertainties surrounding global economic trends and geopolitical tensions continue to impact investor sentiment and market dynamics.

The market downturn highlights the importance of diligent risk management and strategic investment decisions in navigating volatile market conditions.

Investors are advised to exercise caution and conduct thorough research before making investment choices, especially in light of the current market environment.

“Looking ahead to the coming week, mixed sentiment is anticipated in the market as bulls and bears vie for dominance, while market players remain attuned to corporate actions in anticipation of dividend income. Despite this, pockets of gains are expected as fiscal and monetary policies strive to steer the nation’s economy towards recovery, notwithstanding the forthcoming April 2024 CPI report and Q1 2024 Nigeria’s GDP report,” Cowry Asset analysts projected.

Nigerian equities gained 0.03 percent or N22 billion on Thursday to maintain a tepid but positive sentiment amidst mixed trading activities.

The slight increase was attributed to investors’ renewed interest in banking, insurance, and industrial goods stocks, although profit-taking activities persisted in the consumer goods sector.

Leading the gainers’ chart was Guaranty Trust Holding Company (GTCO), whose share price surged from N38 to N40, an increase of N2 or 5.26 percent. Following closely was Oando with its share price climbing from N10.20 to N10.70, up by 50 kobo or 4.90 percent.

Learn Africa also made significant gains, rising from N3 to N3.30, adding 30 kobo or 10 percent to its share price.

Despite the slight green close, investor optimism over the first-quarter financial results of listed companies seemed to dwindle, contributing to the market’s subdued performance.

The year-to-date return for the equities market marginally increased to 31.40 percent.

Key performance indicators, including the All Share Index (ASI) and market capitalization, made slight gains from the previous trading day’s lows of 98,223.97 points and N55.552 trillion to 98,255.72 points and N55.570 trillion, respectively.

Nigerian Breweries, United Bank for Africa (UBA), GTCO, Zenith Bank, and Transcorp were among the actively traded stocks, as investors participated in 8,415 deals, exchanging 676,422,174 shares worth N16.664 billion.

While the market’s movement was modest, the incremental gain reflects the resilience of investor sentiment amidst prevailing uncertainties.