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| Oscar Onyema, DG Nigerian Stock Exchange |
The total value of transactions of listed securities on the Nigerian Stock Exchange stood at N510.1bn at the end of the first quarter, which ended on March 31, 2013.
The amount represents an increase of N152bn or 42.4 per cent over the N358.16bn recorded at the end of February 2012.
Total transactions represent the aggregate purchase and sale of listed securities within a defined period.
Information obtained by our correspondent from the NSE showed that the value of N510.1bn comprised both foreign portfolio investments and domestic investments.
The amount of FPIs for the year stood at N217.56bn or 42.7 per cent of total transactions, while domestic investments stood at N292.54bn, representing 57.3 per cent of total transactions conducted by local and retail investors.
As of February 2013, the FPI accounted for 39.3 per cent of the N358.16bn worth of transactions recorded since the beginning of the year, while domestic investments represented 60.7 per cent.
This shows the growing interest of local and retail investors in the capital market, who before this year, had been participating minimally in the market compared to the interest showed by foreign investors.
The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike, said indeed, there had been increased participation by local investors, who fled the market in the past.
He added that the increased participation was largely due to collaborative efforts aimed at sanitising the market by the regulators and key stakeholders.
Madubuike said the association had been involved in various interactions with major stakeholders in the capital market on ways to ensure that the growing interest showed by retail investors in the last few months was sustained.
He said, “Since stockbrokers are the front runners of the market and the major interface between the investors and the market; we, as an association, have decided to come together to seek ways to increase investor-confidence in the market. We will be 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 in this regard and we hope to see more as the months progress.”
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, adding that such ideas could be considered and adopted for the Nigerian market.
The Director-General, Securities and Exchange Commission, Ms. Arunma Oteh, said the various actions and reforms undertaken by the regulators to grow the market in the last few years had impacted positively on activities.
She said the Exchange had become more transparent in its dealings and activities, which has brought about increased investor-confidence to the market.
“We are excited about the market and the future prospects of our market because people have come to recognise the importance of the capital market to transforming the economy, and that is what happens after one has had a bad experience like we did in Nigeria ."
The Punch