Decline in domestic, foreign participation on equities persist on local bourse
Total transactions at the nation’s bourse decreased by 19.49 percent from N117.71 billion recorded in August 2016 to N94.77 billion (about $0.31 billion) in September 2016.
Also, total transactions from January to September 2016 decreased significantly by 40.59 percent from N1, 560.43 billion recorded within the same period in 2015 to N927.08 billion in 2016.
According to the report, both foreign and domestic activities are decreasing, however the foreign activity is decreasing faster.
Although domestic investors outperformed their foreign counterparts by about 8 percent, domestic transactions decreased by 16.98 percent from N61.65 billion in August 2016 to N51.18 billion in September 2016 while FPI transactions decreased by 22.24 percent from N56.06 billion in August 2016 to N43.59 billion in September 2016.
Monthly foreign inflows outpaced outflows as foreign inflows decreased by 29.65 percent from N34.70 billion in August to N24.41 billion in September 2016.
Foreign outflows also decreased by 10.21 percent from N21.36 billion to N19.18 billion within the same period.
Highlights of the institutional and retail composition of transactions on The Exchange between January and September 2016, showed that, institutional investors significantly outperformed their retail counterparts in the period under review.
The institutional composition of the domestic market decreased by 19.11 percent from N38.26 billion in August to N30.95 billion in September, while the retail composition decreased by 13.51 percent from N23.39 billion in August to N20.23 billion in September.
Meanwhile, the NSE had embarked on several measures towards enhancing increased participation by both local and foreign investors.
The most recent of such measures was organization of the first market data workshop in mid-October 2016 where the CEO of the Nigerian Stock Exchange Mr. Oscar Onyema, urged both domestic and foreign portfolio investors on the need to exploit market data for their benefits.
The NSE boss whilst speaking at the workshop organized in Lagos explained that “Our market data informs traders, investors, media and others in our market on the quotations, latest price, and historical trends for the equities, fixed-income, and ETF products that are traded on our platform.”
He stressed that the information made available by the Exchange is not only used in real time to make instantaneous buy and sell decisions, but the historical market data is used to make price projections, as well as calculate market risks on investment portfolios.
