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Half year: Stock Exchange transactions hit N1.183tn

By on September 16, 2013

The total value of transactions of listed securities on the Nigerian Stock Exchange stood at N1.183tn in the half year report, which ended on June 30, 2013.

The amount represents an increase of N673bn or 132 per cent compared to the N510.1bn recorded at the end of the first quarter, ended March 31, 2013.

The total transactions represent the aggregate purchase and sale of listed securities within a defined period.

Information obtained by our correspondent from the NSE on Friday showed that the value of N1.18tn comprised both Foreign Portfolio Investments and domestic investments.

The amount of FPIs for the year-to-date stood at N582.64bn or 49.24 per cent of the total transactions, while the domestic investments amounted to N600.70bn, representing 50.76 per cent of the total transactions conducted by local and retail investors.

As of March 2013, the FPIs accounted for 42.7 per cent of the N510.1bn worth of transactions recorded since the beginning of the year, while domestic investments represented 57.3 per cent.

This, according to market watchers, shows the growing interest of local and retail investors in the capital market, who before this year were participating minimally in the market, compared to the interest shown by foreign investors.

The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike, confirmed to our correspondent that there been increased participation by local investors, who fled the market in the wake of the 2008 crisis.

He said the renewed interest in the market could be traced to the collaborative efforts of the regulators and key stakeholders aimed at sanitising the market.

Madubuike said the association, for instance, had been involved in various interactions with major stakeholders in the capital market on ways to ensure that the growing interest being shown by retail investors in the last few months was sustained.

He said, “Since stockbrokers are the frontrunners of the market and the major interface between the investors and the market, we have decided to come together to seek ways to increase investor-confidence in the market. We have been involved in various investor education schemes to allow investors to become more aware of the happenings in the market.

“We have done a lot in this regard already and we know that a lot of work still needs to be done as we want to refocus to ensure that retail investors return to the market. Already, we have seen some improvements and we hope to see more as the year progresses.”

Madubuike explained that stakeholders had been studying the situation in other markets around the world as regards the global meltdown and what such markets did to overcome the situation.

He added that such ideas could be adopted for the Nigerian market.

The President, Chartered Institute of Stockbrokers, Mr. Ariyo Olushekun, said a lot of investors were taking positions in the equities market ahead of the expected rise in the market indices.

He said, “We are pleased to note that recovery has already commenced in our market and we are sure that this recovery will be sustained. Already, you will notice that we are having significant year-to-date returns in the market.

“All indications point to the fact that we are going to see even more growth in the months ahead, and we can see this from the way that both local and foreign investors have been playing in the market in the last two years and taking advantage of the undervalued prices of major companies.”