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NigeriaDecides2023

Nigeria’s Domestic Investors Control 78.5% of half year equities deals

Nigeria’s local investors accounted for 78.54percent of equities transactions on the Bourse in half-year (H1) to June 30.

At that rate, they have further outshined their foreign counterparts that accounted for just 21.46percent, according to the Nigerian Exchange Limited (NGX) recently released Fact Sheet.

The local investors further consolidated their position in the review half-year period, up from previous lows of 51.11percent in 2019 and 66.37 percent in 2020 as against foreigners that controlled 48.88percent of equities deals in 2019 and 33.63percent in 2020.

The total foreign transactions on Nigerian equities valued at N942.55 billion ($2.59 billion) in 2019; N729.20 billion ($1.78 billion) in 2020, stood low at N221.96 billion ($54million), fueling concerns about foreign outflows from Nigerian equities market.

The Nigeria Exchange closed the first half (H1) of 2021 in negative, following the reallocation of assets from equities to fixed income (FI) as a result of the uptick in yields in the Fixed Income market during the period.

This reflected on the return posted by NGX All Share Index (ASI) which closed the second quarter (Q2) at 37,907.28 points, signifying a 5.87percent decrease from 40,270.72 points at the start of the year. Nonetheless, all equity market indices, except the NGX ASEM index, posted positive one-year returns.

Total Market Capitalisation at N38.19 trillion ($92.81 billion) in June 2021 represents a 52-week increase by 33.44percent.

Also, equities Market Capitalisation at N19.77 trillion ($48.04 billion) same period represents 2 52-week increase by 54.67percent. The cumulative value of Large Cap stocks stood at N15.88trillion ($38.60 billion) in H1’20, up 71.66percent over a 52-week period.

Read also: Equities market affirms analysts’ views, opens week on negative note

The Mid Cap stocks’ value stood at N2.86trillion ($6.96billion), up 11.98percent, while Small Cap stocks value was N1.02billion ($2.48billion), representing 52-week high of 5.08percent.

The NGX is a multi-asset exchange providing a home to the best of African enterprises listed on its Premium, Main, and Growth Boards; diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds.

NGX Fact Sheet shows that the Exchange Traded Fund (ETF) Market Capitalisation at N12.25 billion ($29.78 million) as at end of second half of 2021 implies 52-week decrease by 12.90percent.

The Bonds Market Capitalisation at N17.39trillion ($42.27 billion) in Q2’2021 represents 52-week increase by 17.90percent. The NGX-30 Index at 1,594.87 points represents an increase by 51.59percent over a 52-week period from July 2020.

In Q2 2021, trading activities decreased when compared with Q2 2020 as the total volume and value of securities traded reduced by 15.41percent and 5.41percent respectively.

There was a 5.41percent decrease in the average daily value traded, from N3.22 billion ($8.33 million) in Q2 2020 to N3.05 billion ($7.40 million) in the period under review.

Similarly, the average daily volume of securities traded fell by 15.41percent to 245.97 million units in Q2 2021 when compared with 290.77 million units recorded in Q2 2020.

At the end of the quarter, the average PE ratio of The Exchange’s listed equities stood at 164.73 while equity turnover velocity was 3.53percent.

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