Investors Divert Port folio To OTC Bond Market

Investors at the Nigerian Capital Market took solace in the over-the-counter (OTC) bond market during the sustained bearish run of 2009 as they diverted most of their portfolio into the bond   market.

According to the Nigerian Stock Exchange (NSE) monthly report for November, the OTC bond market recorded a total transaction volume of 16.34 billion units of bonds worth N17.7 trillion during the period of eleven months in 2009 up from a volume of 9.5 billion units of bonds valued at N1.28 trillion exchanged by investors in the corresponding period of 2008.

In the equity market, a total of 95.3 billion units of shares valued at N638.11 billion were exchanged by investors during the review period of 2009 as against 183.45 billion units of shares worth N2.33 trillion traded in the comparable period of 2008.

The benchmark index of the NSS, the all Share Index was down by 10,623.61 points or 33.8 per cent, having closed at 20,827.17 basis points on December 31, 2009, compared with 31,450.78 basis points at which it closed on December 31, 2008

Similarly, the aggregate market capitalisation of listed equities went down by N1.97 trillion from N6.957 trillion in the 2008 to N4.989 trillion in 2009.

In a review of 91 largest indexes across the globe by the Bloomberg, the NSE All Share Index was declared as the worst performing index for 2009.

Market analysts had attributed the worst performance of market indicators to the heavy price depreciation suffered by many highly capitalised stocks on the Exchange.