Domestic investors stake on Nigerian equities now 57.3%

Domestic investors at the Nigerian Stock Exchange (NSE) closed the month of March 2013 with their stake in equities flows at the bourse put at 57.3 percent, while foreign portfolio investors’ bet was put at 42.7 percent.

In 2012, out of N1.317trillion worth of stock market transactions, domestic investors’ stake was 38.6 percent, while foreign investors accounted for 61.4 percent.

Foreign investors staked N808.4billion in the equities market. Stock market transactions include purchases and sales.

On a monthly basis, the Exchange polls trading figures from major custodians and market operators on their foreign portfolio clients.

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FPI flow, which stood at 15 percent in 2007 consistently increased over the years to stand at 67 percent in 2011 but dropped to 61.4 percent in 2012.

The declining trend of FPI flow continued in 2013. Consequently, domestic investors increased their share of the market from 33.2 percent in 2011 to 38.6 percent in 2012, and to 57.3 percent in 2013. Domestic investors can be categorised into either institutional or retail investors.

Foreign Portfolio Investments on the Nigerian stock market as at the review month stood at N217.56 billion (representing inflow of N123.43billion and outflow of N94.14billion).

Also, out of N510.1 billion worth of transaction, N217.56 billion came from Foreign Portfolio Investors (FPI).