Domestic investors –categorised into either institutional or retail investors –have increased their stake in the equity trading at the Nigerian Stock Exchange (NSE) to 61 percent while Foreign Portfolio Investors (FPI) have only 39.3 percent, recent statistics at the bourse from 2007 to February 2013 has shown.
On a monthly basis, the Exchange polls trading figures from major custodians and market operators on their foreign portfolio clients.
In 2012, foreign investors pulled N808.4billion into the Nigerian stock market out of total transactions worth N1.317trillion –meaning they accounted for 61.4 percent while domestic investors accounted for only 38.6 percent last year.
The recent figures showed that flow of Foreign Portfolio Investments (FPI) on the Nigerian stock market dropped from record highs of N615.63billion in 2007 out of total transactions on the Exchange worth N4.171trillion to N140.8billion out of total transactions on the Exchange worth N358.16billion as at February 2013.
According to the Nigerian Stock Exchange, “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 and to 61 percent in 2013.”
In another development, after trading on the floor of the Nigerian Stock Exchange yesterday, gains recorded in some blue-chip stocks helped to redirect the market northwards. The NSE All Share Index rallied to 33,361.96 points from the 33,207.20 points the preceding trading day, while market cap closed positive at N10.675trillion against the preceding day’s N10.626trillion.
Stocks that helped to drive these gains include Nestle Nigeria plc which gained N36 from N834 to N870. Others are Dangote Cement plc which rallied from N147.11 to N150, adding N2.89; Guinness Nigeria plc gained N2, from N265 to N267; Presco rallied from N23.80 to N25, adding N1.20; while PZ Cussons gained N0.60, from N39.90 to N40.50.
Nigerian Breweries plc led the losers chart after its share price dropped from N166.50 to N163.04, losing N3.46; followed by UAC-Properties plc which dipped from N14.90 to N14.24, losing N0.66; and International Breweries which declined by N0.55, from N21.85 to N21.30. In 5,311 deals, equity dealers yesterday exchanged 409,806,115 shares valued at N4.709billion.