Nigeria: Decline in Bond Yields Lifts Equities Market

After two weeks of dismal performance, the Nigerian equities returned to positive territory last week as more investors increased their exposures to the equities market due to the recent fall in bond yields. The yield on the 5-year FGN Bond maturing November 2013 fell to 11.95 per cent last Thursday from 12.11 per cent on Wednesday, while also the 3-year FGN Bond’s yield fell to 12.30 per cent from the 12.44 per cent it traded last Wednesday.

Investors had the previous week waited in vain for the market to rebound as the stock market drifted further southward following sell-offs on some high capitalised stocks in the consumer goods and financial services sectors.

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