Investors look to bonds for solace on dwindling equities returns

By Chioma Obinagwam

The fixed income segment of the capital market(bonds) is apparently becoming the toast of investors on the capital market following a downturn in the equities side of the capital market.

This is buttressed by the volume and value of transactions recorded in the bonds market, where a total of 1,510 units of Federal Government bonds(FG12202051) valued at N1.558 million were traded in one deal compared to a total of 580 units of FG bonds valued at N576.723 million transacted in the preceding week in 2 deals.

Extracts from the weekly report of the Nigerian Stock Exchange(NSE) for the period ended October   disclosed.

This represents an increase of 930 units or 160.34 per cent in the volume traded over the preceding week.

More so, the value of the bonds traded within the review period also translates an increase of N981.277 million or 170.15 per cent.

Although, the equities market leaped marginally by 0.09 per cent evident in it’s key measurement indicators- the NSE All-Share index and the Market Capitalisation which closed at 27,861.03 and N9.570 trillion respectively.

The report, however indicated that the All-Share index, which shows the changing average value of the share prices of all companies on a stock exchange,  had already shaved 2.75 per cent year to date.