Local Investors renew interest in capital market – NSE

 By Festus Okoromadu, Lagos

There are facts to show that local equity investors in Nigeria are showing  renewed interest in the capital market.   Data recently release by the Nigerian Stock Exchange (NSE) shows that between January and November 2012, domestic investors increased their share of investment in the market from 33.2 per cent to 40.19 per cent in 2012. Analysis of the data carried out by The Post, shows that foreign investment in the market increased from 15 per cent in 2007 to 67 per cent in 2011.

But the trend took a different dimension in 2012 as the volume of local investments in the market in 2012 increased significantly. For instance, a total of N615.63 billion was injected into the market by foreign investors in 2012 representing 14.8 per cent of the N4.172 trillion invested in the year while the balance of 85.2 per cent came from domestic investors.

Meanwhile the situation was not so in 2011 when foreign investors contributed 66.8 per cent of the N1.269 trillion invested in the market amounting to N847.9 billion. The data further showed that foreign inflow (purchase) stood at N256.03 billion in 2011 while outflow (sales) hit N359.6 billion. In 2008, inflow further declined to N153.5 billion with outflow increasing to N633.93billion.

But in the 2009, the trend changed with inflow rising to N299 billion when outflow reduced to N195.6 billion. In 2010 and 2011 inflow further increased to N382.1 billion and N512.72 billion, while outflow declined to N195.24 billion and N335.15 billion respectively.

It will be recalled that in January 2012, The Exchange reported that foreign investors accounted for 81 per cent of total inflow (purchase) on the market during 2011. While total outflows (sales) accounted for 53 per cent of the market. Consequently, total transaction by foreign investors came up to N847.9 billion or 67 per cent out of total transaction of N1.3 trillion.