The mounted revenue (Bonds) market capitalization on the Nigerian Alternate (NGX) slipped by 0.11% to N51.45 trillion, triggered by profit-taking by traders following earlier weeks of rally from sustained shopping for strain.
Conversely, the Alternate Traded Merchandise (ETPs) phase noticed a modest enchancment in quantity and worth traded on the shut of buying and selling on Friday, October 17. Other than buying and selling in equities, the NGX additionally supplies a platform for trades in bonds, Mutual Funds, Futures and Derivatives.
Though the equities phase with over N94 trillion in market capitalization overshadows different buying and selling segments, traders in search of to diversify investments are actually exploring alternatives supplied by different devices, particularly bonds and ETPs, because the market stabilizes.
Bonds decline in quantity and worth
Weekly commerce knowledge obtained from the NGX confirmed that whole bond transactions dropped considerably to 448,601 models valued at N381.846 million, in contrast with 984,209 models price N883.357 million exchanged in 28 offers the earlier week. This decline in quantity and worth underscores a shift in investor sentiment, as contributors adopted a extra cautious stance amid evolving yield decline throughout the fixed-income house.
The FGSUK2027S3 instrument led the week’s exercise, accounting for 399,636 models valued at N332.96 million throughout 15 offers. Different notable devices included FGSUK2033S6, which traded 22,201 models valued at N20.60 million, and FGSUK2032S5, with 11,255 models price N11.82 million.
Shorter-tenored bonds resembling FGS2028S9, FGS2028S4, and FGS2028S8 witnessed restricted demand, reflecting subdued curiosity in medium-term maturities. Yields on bonds have been largely moderating for the reason that Central Bank of Nigeria (CBN) began decreasing rates of interest on the finish of its final Financial Coverage Committee (MPC) assembly in September.
ETP phase information increased quantity, worth
Buying and selling in Alternate Traded Merchandise (ETPs) climbed to N24.917 million, marking a modest improve from N24.075 million recorded the earlier week. Likewise, buying and selling quantity surged to 202,526 models throughout 556 offers, in contrast with 147,745 models exchanged in 372 offers the prior week, highlighting sustained investor urge for food for diversified devices.
The week’s most energetic product, LOTUSHAL15, dominated exercise, accounting for 132,933 models valued at N13.10 million executed in 123 offers. STANBICETF30 adopted intently with 12,648 models price N6.62 million traded in 225 offers, whereas VETGRIF30 recorded 37,177 models valued at N1.99 million in 89 offers. Different merchandise, resembling VETBANK, VSPBONDETF, and GREENWETF, additionally featured, although their turnovers had been comparatively smaller as compared.
Reflecting this uptick in demand, the ETPs market capitalization expanded by 0.78% to N32.19 billion, signaling rising investor confidence in exchange-traded funding automobiles. Merchants attribute the elevated traction to broader market stability and renewed curiosity in low-cost, diversified devices amid ongoing macroeconomic changes.
General transaction worth totals N406.76 million
Cumulatively, each segments—the ETPs and bonds markets—posted a mixed transaction worth of N406.76 million on the shut of the week, pointing to sustained investor engagement regardless of fluctuations in exercise ranges. The ETP market contributed N24.92 million, whereas the bond market accounted for N381.85 million. Whereas the fixed-income house stays dominant, the ETP phase continues to draw incremental curiosity as traders diversify portfolios in response to market dynamics.
Analysts counsel that buying and selling momentum may strengthen within the coming weeks as portfolio managers rebalance holdings forward of financial coverage selections on the subsequent assembly in November. Improved readability on rate of interest path and inflation management is anticipated to form yield actions and deepen participation throughout each the ETP and fixed-income segments.
Key highlights of transactions in the course of the week ended Friday, October 17
- Fastened Revenue Market Cap: N51.45 trillion (- 0.11%)
- ETPs Market Cap: N32.19 billion (+0.78%)
- ETPs Worth Traded: N24.92 million
- ETPs Quantity: 202,526 models in 556 offers
- Bonds Worth Traded: N381.85 million
- Bonds Quantity: 448,601 models in 46 offers
- Mixed Market Transaction Worth: N406.76 million
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