Tuesday, 9 July 2013

Foreign Investors behind Nigeria’s capital market recovery – NSE boss

Nigerian Stock Exchange
WorldStage Newsonline-- The bullish run in the Nigeria’s capital market in the last six months has been driven by foreign investors, according to the Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE), Oscar Onyema.
Speaking at an interactive forum on the use and distribution of TNSE Market Data in Lagos, he said: “I want to point out one thing, the recovery you are seeing in the market today is driven by foreign investors, let’s not make any mistake about that.
"They know it goes up and down, we had to go to them to explain what we are doing in order to bring confidence back from their side."
He further said the NSE had meetings with the Pension Fund Administrators (PFAs), insurance companies and that “last year alone, we had over 200 investors’ education programmes.”
At the end of year 2012, Nigeria’s Securities and Exchange Commission (SEC), had that foreign investors contributed about 70 per cent of daily trading value of equities at the Nigerian Bourse, while retail investors contributed 30 per cent.

It would be recalled NSE had in March 2013 reported a decline in Flow of Foreign Portfolio Investments (FPIs) in equity trading for the period 2007 to February 2011.
“An Appraisal of Capital Market Performance 2012” said local investors contributed 44.3% of total market activities on its Bourse.
“Local investors started coming back to the equities market, accounting for 44.3% of total market Activity as at November 2012, up 38.38% from 2011,” NSE said.
The NSE’s All-Share-Index (ASI) hit its recent high when it appreciated by 2.11 per cent to close on Friday at 36,926.29, which experts see as the commencement of full recovery in the Nigerian capital market.
Also the market capitalization of the listed equities on the main board increased by 2.35per cent to close at N11.694 trillion, while the NSE 30 Index appreciated 2.26% to close at 1,740.40.
The NSE-ASeM did not record any change while the other remaining NSE indices appreciated during the week: NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Oil/Gas, NSE-Lotus II, and NSE Industrial Goods rose by 1.99%, 3.10%, 1.03%, 3.12%, 2.49% and 5.33% respectively.

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