EQUITY transactions at the Nigerian Stock Exchange [NSE} Monday ended on a negative note as some blue chips recorded price depreciation.
The All-Share Index , due to the downward trend, depreciated by 108.6 basis points or 0.34 percent to close at 31,474.88 points as against the opening index of 31, 583.48 points.
Also, the market capitalisation dropped by N32 billion to close at N10.1 trillion recorded last week.
NewGold led the losers’ chart with N11 to close at N2,535 per unit.
Dangote Cement followed with N6.80 to close at N140.20 per share while Air Service dipped by 49 kobo to close at N10.90 per share.
Access Bank lost 23 kobo to close at N10.90 per share, while Diamond Bank lost 20 kobo to close at N6.50 per share.
However, Julius Berger led the price gainers’ table with N5.15 to close at N56.67 per share. Guinness also followed with N5 to close at N290 per share, while Flour Mill added N3.67 to close at N77.16 per share.
Investors bought 970.02 million shares worth N8 billion in 6, 374 deals. This is against the 552, 92 million shares valued at N6.22 billion traded in 6, 565 deals on January 25.
Meanwhile, the key drivers of activities during the review week included FGN primary market bond auction by the DMO, treasury bills auction by the CBN and the maturity of N150 billion worth of government bonds.
At the monthly federal government bond auction, N110billion worth of five year (N35billion), seven year (N30billion) and 10year (N45billion) bonds were sold. Meanwhile, as a result of the maturity of the 9.45 January 25, 2013 (N150bn) during the week, which predictably led to elevated liquidity levels in the system, marginal rates for the auctioned bonds came in lower at 10.80 percent (the 15.10 April 27, 2017), 11.00 percent (16.00 June 29, 2019) and 11.34 percent (16.29 January 27, 2022) against 11.80 percent, 12.10 percent and 11.90 percent recorded at the last auction.
While all securities were reopened, in addition, subscription levels during the auction stood at N223.05billion representing 202.77 percent.
However, the five year instrument recorded the highest demand thereby recording the lowest cut-off rate in recent months.
Dunn Loren Merrifield, financial analysts are of the opinion that the sustained decline in yields across the curve is a direct result of continual demand for Nigerian government securities from offshore investors and the liquidity status of the system.
‘’We expect this trend to continue in the weeks ahead,’’ they said.