(Adds details, bonds, naira, trader comments)
By Chijioke Ohuocha
ABUJA, March 10 (Reuters) - Nigerian stocks and bonds fell
on Tuesday, while the naira eased, after a sell-off triggered by
a slump in global oil prices.
The main share index .NGSEINDEX fell 4.12%, the biggest
daily fall in more than two years, while the yield on the
longest 30-year bond shed 75 basis point as investors sold
Nigerian assets.
Oil prices faced their biggest rout in nearly 30 years on
Monday. However, they jumped by around 10% on Tuesday as
investors eyed the possibility of economic stimulus and Russia
signalled that talks with OPEC remained possible. The oil market was hit after OPEC and its ally Russia failed
to agree deeper cuts to production as a coronavirus outbreak
that started in China spread to other countries and has slashed
demand for oil.
"We are seeing offshore funds trying to sell across the
curve," one trader said, adding that they were selling treasury
bills more aggressively.
Traders said domestic funds were picking up some of the
slack at higher yields.
Nigerian treasury bills fetched between 16% and 17% on
Tuesday, up from 14% before the oil price slump, while the yield
on the 30-year bond fell 75 basis points to 13.05%.
The naira NGN= , which has been under pressure from
dwindling foreign reserves, eased to 367 over-the-counter, from
366 in its previous session.
Banking stocks .NGSEBNK10 slumped 11.4% on Tuesday,
extending the previous day's losses, after the market opened
with shares of major lenders on sell offers. Investors bid to
sell 329 million shares each of Guaranty Trust Bank GUARANT.LG
and Zenith Bank ZENITHB.LG , causing a sell-off.
Stanbic IBTC.LG also saw heavy sell orders, as did Access
Bank ACCESS.LG .
"Investors are widening bid and offer because of fears that
offshore may be looking to reduce their exposure," another
trader said.