Nigerian share prices have been sliding since March 10, as domestic funds put cash into government debt auctions to lock in higher yields of around 14% on bonds.
The index fell 1.62% to 37 274 points on Tuesday.
“The market is void of buyers … locals are not buying while foreigners are selling,” one stockbroker said, adding that liquidity has also been affected in the market.
“Locals are playing in the treasury bill market.”
Nigeria has been issuing treasury bills and other debt instruments at attractive yields to draw in foreign funds. In March it plans to raise 221.9 billion naira in treasury notes, soaking up liquidity.
Nigeria sold the three-year bond at 14.10% last week, higher than February’s auction when it sold at 13.49%. The 10-year note fetched a yield of 14.20%.
The index of Nigeria’s top five oil and gas companies was down 3.33% while the consumer goods sector index was off 1.73%.
All-share index heavyweight Dangote Cement, which accounts for around a third of the market’s total value also fell 2.23%.
The index is down 8.33% this year, having gained 47% in 2013.