The all-share index hit an intra-day low of 19,961.18 points, the lowest since December 24, 2003. Traders said funds have been moving out of Nigerian equity markets and into fixed income, where yields have improved on the back of a series of central bank interest rate hikes this year.
"The negative sentiment has largely muted any sort of attractive valuations in the market ... although investors agree that the market is cheap, there is just no key catalyst to trigger the market to re-rate shares," said Akinbamidele Akintola, equity sales analyst at Renaissance Capital.
Nigeria's equity index rose above 65,000 points in 2008 to become the best performing stock market in the world, but worsening global economic conditions have helped the index shed around 70 percent of its value.
The Nigerian stock market is passing around $10 million of trade a day, from around $100 million in 2008, dealers said.
At the end of 2009, Africa's second biggest economy rescued nine banks from collapse, which contributed to a sapping of investor confidence.
"The market is fundamentally weak. Global sentiments have weighed on equities while local funds have been cyclical with their orders. On the international side, the levels of demand that we are seeing is significantly lower than where it was in 2008," one local trader said. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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