The fixed income (Bonds) market capitalization at the Nigerian Exchange (NGX) slipped by 0.11% to N51.45 trillion, triggered by profit-taking by investors following earlier weeks of rally from sustained buying pressure.
Conversely, the Exchange Traded Products (ETPs) segment saw a modest improvement in volume and value traded at the close of trading on Friday, October 17. Apart from trading in equities, the NGX also provides a platform for trades in bonds, Mutual Funds, Futures and Derivatives.
Although the equities segment with over N94 trillion in market capitalization overshadows other trading segments, investors seeking to diversify investments are now exploring opportunities offered by other instruments, especially bonds and ETPs, as the market stabilizes.
Bonds decline in volume and value
Weekly trade data obtained from the NGX showed that total bond transactions dropped significantly to 448,601 units valued at N381.846 million, compared with 984,209 units worth N883.357 million exchanged in 28 deals the previous week. This decline in volume and value underscores a shift in investor sentiment, as participants adopted a more cautious stance amid evolving yield decline across the fixed-income space.
The FGSUK2027S3 instrument led the week’s activity, accounting for 399,636 units valued at N332.96 million across 15 deals. Other notable instruments included FGSUK2033S6, which traded 22,201 units valued at N20.60 million, and FGSUK2032S5, with 11,255 units worth N11.82 million.
Shorter-tenored bonds such as FGS2028S9, FGS2028S4, and FGS2028S8 witnessed limited demand, reflecting subdued interest in medium-term maturities. Yields on bonds have been largely moderating since the Central Bank of Nigeria (CBN) started reducing interest rates at the end of its last Monetary Policy Committee (MPC) meeting in September.
ETP segment records higher volume, value
Trading in Exchange Traded Products (ETPs) climbed to N24.917 million, marking a modest increase from N24.075 million recorded the previous week. Likewise, trading volume surged to 202,526 units across 556 deals, compared with 147,745 units exchanged in 372 deals the prior week, highlighting sustained investor appetite for diversified instruments.
The week’s most active product, LOTUSHAL15, dominated activity, accounting for 132,933 units valued at N13.10 million executed in 123 deals. STANBICETF30 followed closely with 12,648 units worth N6.62 million traded in 225 deals, while VETGRIF30 recorded 37,177 units valued at N1.99 million in 89 deals. Other products, such as VETBANK, VSPBONDETF, and GREENWETF, also featured, though their turnovers were relatively smaller in comparison.
Reflecting this uptick in demand, the ETPs market capitalization expanded by 0.78% to N32.19 billion, signaling growing investor confidence in exchange-traded investment vehicles. Traders attribute the increased traction to broader market stability and renewed interest in low-cost, diversified instruments amid ongoing macroeconomic adjustments.
Overall transaction value totals N406.76 million
Cumulatively, both segments—the ETPs and bonds markets—posted a combined transaction value of N406.76 million at the close of the week, pointing to sustained investor engagement despite fluctuations in activity levels. The ETP market contributed N24.92 million, while the bond market accounted for N381.85 million. While the fixed-income space remains dominant, the ETP segment continues to attract incremental interest as investors diversify portfolios in response to market dynamics.
Analysts suggest that trading momentum could strengthen in the coming weeks as portfolio managers rebalance holdings ahead of monetary policy decisions at the next meeting in November. Improved clarity on interest rate direction and inflation control is expected to shape yield movements and deepen participation across both the ETP and fixed-income segments.
Key highlights of transactions during the week ended Friday, October 17
- Fixed Income Market Cap: N51.45 trillion (- 0.11%)
- ETPs Market Cap: N32.19 billion (+0.78%)
- ETPs Value Traded: N24.92 million
- ETPs Volume: 202,526 units in 556 deals
- Bonds Value Traded: N381.85 million
- Bonds Volume: 448,601 units in 46 deals
- Combined Market Transaction Value: N406.76 million
