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Domestic Investors Shore Up Confidence In Equity Market

By on January 10, 2013

Domestic investors have increased their participation in the Nigerian Stock Exchange transactions to 40%, leaving only 60% for foreign investors. This development has signaled a boost of confidence among indigenous Nigerians and local institutions concerning the equities market.

The Nigerian Stock Exchange in a recent report stated that “Foreign Portfolio Investment (FPI), which stood at 15% in 2007 consistently increased over the years, to stand at 67 percent in 2011. However, between January and November 2012, we observed that domestic investors increased their share of the market from 33.2% in 2011 to 40.1% in 2012. Domestic investors can be categorised into either institutional or retail investors.”

Analysts are attributing the renewed confidence of investors to increased clarity on the operations of the NSE, the stock market forbearance package granted last year, and the return of market makers to the bourse.

The President of the Association of Stockbroking Houses of Nigeria (ASHON) said, “It is a result of the fact that a lot more has been done to increase market confidence. This attracts investors to equities.”