Nigerians invested N10.4tn in NSE in five years

Local investors staked a total of N10.4tn on the Nigerian Stock
Exchange in the last five years.
The investments made by Nigerians covers the period 2007 to2012, and
represents an increase of N6.34tn or 156 per cent compared to the
N4.06tn investment by foreign investors in the same period.
In 2007, just before the meltdown of the market, domestic transactions
peaked at N3.55tn compared to N615bn worth of foreign transactions in
the year, while domestic transactions accounted for N3.97bn in 2008 as
against the foreign investments of N787.4bn that year.
In 2009, total domestic transactionsstood at N946.84bn as against
foreign transactions of N424.6bn, while 2010 saw local investments
peaked at N1.02tn compared to N577bn.
Figures obtained by our correspondent from the NSE showed that 2011
marked the lowest year for the local investors as the volume of
transactions stoodat N421bn compared to the N847.9bn worth of
transactions by foreign investors following the nationalisation of
three banks by the Federal Government.
In 2012, however, domestic transactions rose to N508.6bn, while
foreign investors staked N808.4bn on equities at the Exchange.
As of the first quarter ended March 31, 2013, the total value of
transactions of listed securities on the NSE stood at N510.1bn.
This amount represents an increase of N152bn or 42.4 per cent compared
to N358.16bn recorded atthe end of March 2012.
Total transactions represent the aggregate purchase and sale of listed
securities within a defined period.
Analysts said the trend of increase in local participation showed that
more local investors are returning to the Nigerian market.
According to them, this shows the growing interest of local and retail
investors, who had previously been participating minimally, in the
market compared to the interest showed by the foreign investors.
The Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka
Madubuike, agreed that there had been increased participation by local
investors, who had fled the market in the past.
He added that this was largely due to efforts aimed at sanitising the
market by the regulators and key stakeholders.
Madubuike said the association hadbeen 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
market in the last few months was sustained.
He said, "Since stockbrokers are thefrontrunners in the market and the
major interface between the investors and the market; we, as
anassociation, 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 improvement in this regard and we hope to
see more as the months progress."
Madubuike explained that stakeholders had been studying what obtained
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 in the Nigerian capital market
subject to their workability.
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.