By Michael Eboh
The Nigerian Stock Exchange (NSE) has lauded the return of activity in the secondary market for bonds, calling on operators in the Nigerian capital market to ensure the growth of the sector by participating actively in the market.
This is coming on the heels of the trading of 2,000 units of the Lagos State Fixed Rate Redeemable Bond worth N2.2 million, last week,Â in one deal.
Speaking in Lagos, Monday, Mr. Binos Yaroe, General Manager/Head, Market Operations and Information Technology Department, stated that the trading recorded in the sector last week, was a major feat for the NSE in recent times, going by the boycott of the NSEâ€™s trading platform for bond trading and near inactivity in the sector over the years.
He appealed to stockbrokers to advise their clients, especially retail investors on the benefits of investing in bonds and other fixed income securities.
He urged stockbrokers to ensure that the trend recorded last week be sustained, advising them to look critically at the current state of the market, so as to be able to analyse the future trend of the market in the next couple of months.
He said, â€œWe recorded our first transaction in bonds on the NSE, after a very long while, last week, we hope that this trend continues. Stockbrokers should advise retail investors on the advantages of investing in fixed income securities, as this in addition to other factor would help in ensuring the sustenance of the trend recorded last week.
â€œIn the past, the NSE used to be trading more bonds than equities, until recently, it is expected that this trend will return in the not-too-distant future.â€
The NSE secondary market for bonds has remained inactive over the past couple of years, with investors focussing only on the primary market.
Over the years, they have been inactivity in theÂ Federal Government Development Stocks, and Industrial Loans/Preference Stocks sectors, while the Over-the-Counter (OTC) market for Federal Government have continued to enjoy the patronage of investors.
Meanwhile, a bearish trend was recorded in trading on the Nigerian Stock Exchange (NSE), Monday, as the value of listed equities depreciated by N28.87 billion.
In particular, equitiesâ€™ value, represented by the market capitalisation, dropped by 0.52 per cent to close at N5.551 trillion from N5.579 trillion.
The All-share index shed 119.86 per cent to close at 23,048.78 points from 23,168.64 points at which it commenced the dayâ€™s trading.
The dip in the market indices was occasioned by losses on the share prices of majority of the listed equities, with Nigerian Breweries Plc recording the most share price loss, dropping by N3.00 to close at N57.00 per share, UAC Property Development Company Plc followed with a loss of N0.65 to close at N19.35 per share and Glaxo SmithKline Consumer Plc dipped by N0.50 to close at N26.00 per share.
Other share price losers include: United Bank for Africa Plc N0.45, Eterna Oil and Gas Plc N0.32, RT. Briscoe (Nigeria) Plc N0.27, Unilever Nigeria Plc N0.25, Access Bank Plc N0.19, DN Meyer Nigeria Plc N0.19, Airline Services and Logistics Plc N0.15 among others.