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Domestic investors confidence improving – NSE

By on May 31, 2014

The Nigerian Stock Exchange has said more investors are returning to the capital market, increasing domestic participation.

The Executive Director, Business Development, NSE, Mr. Haruna Jalo-Waziri, said this in Lagos at the 2014 ‘Putting Investors First’ Day organised by the Exchange in partnership with the CFA Society of Nigeria.

According to Jalo-Waziri, although the Nigerian capital market shows signs of improved investor confidence, the Exchange still has work to do.

He said, “Year-to-date 2014, local investors participation in our market outweighs foreign participation. It can be recalled that as of end of first quarter 2013, local investors accounted for close to 60 per cent of transaction value in the Nigerian capital market, while foreign investors were responsible for about 40 per cent.

“This turn of events contrasted sharply with the circumstances between 2009 and the first half of 2012 when local investors eschewed the market on account of losses they sustained in the aftermath of the near meltdown of 2008 with transaction values being controlled by foreign investors to the tune of 80 per cent in certain instances.”

The NSE executive director also said that improved regulatory environment and performance of quoted companies from 2012 till date had positively impacted on stock market prices and overall market indices, while the average daily value of shares traded had also risen significantly.

He explained that the investor programme was part of the NSE’s financial literacy activities, which it started in 2012 in order to protect investors.

He said, “This (financial literacy) programme aims to enhance investors’ understanding of the basics of investing around portfolio construction, asset allocation and risk diversification.

“The ‘Investor Clinic’ aspect of the programme, which is a flagship product for our financial literacy efforts, has been delivered in partnership with stellar organisations such as Morgan Stanley, Stanbic IBTC, Greenwich Trust and FBN Capital.”

Jalo-Waziri also said, “The two clinics convened last year targeted professional bodies and religious associations with the last one having us shift gear to a very important constituency, the registered shareholders associations.

“Additionally, 287 investor education workshops were conducted for ‘grass roots level’ investors (civil servants, students, SMEs, etc.) across Nigeria via our 13 branch offices.”

He explained that while the NSE’s focus from 2011 to 2013 was on revamping corporate governance, improving human capacity and restructuring the market, it was now determined to develop a larger footprint on the African continent and attaining emerging market status.

“That is why we are very much in support of the West African Capital Markets Integration Council efforts and similar programmes. This will open opportunities for you, the Nigerian investors, to extend your reach. We believe that these steps are critical to the NSE becoming the foremost securities exchange on the continent,” he added.

The NSE also expressed support for the CFA’s Future of Finance project, stressing that the group’s goals of helping to build awareness of the fiduciary duty to protect investor interests were positive.

 

 

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