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Chinwendu Obienyi
Despite the weak macro-economic situation which has necessitated persistent sell-offs on the floor of the Nigerian Stock Exchange (NSE), total transactions by investors increased by 15.95 per cent from N121.99 billion (about $398.0 million) in August 2019 to N141.45 billion (about $461.50 million) in September 2019.
Analysis of monthly domestic and foreign portfolio participation in the equity market for September 2019, showed that total foreign transactions increased by 47.81 per cent from N63.90 billion (about $208.4million) to N94.45 billion (about $308.2million) between August and September 2019.
However, total domestic transactions decreased by 19.91 per cent from N58.69 billion in August to N47.00 billion in September 2019.
The FPI report, co-ordinated by the Exchange, aggregates transactions from major custodians and capital market operators and it is widely regarded as a credible measure of the FPI trend. The report uses two key indicators-inflow and outflow, to gauge foreign investors’ mood and participation in the stock market as a barometer for the economy.
Analysts opine that confidence is gradually slipping back into the economy and the recent set-up of the economic advisory board has shown that the current administration is not sitting back but running round to change the current state of the economy.
Registrar/Chief Executive Officer, Institute of Capital Market Registrars, Dr David Ogogo, who spoke to Daily Sun via telephone, commended the reforms set up by the Securities and Exchange Commission (SEC) and the NSE, adding that it was yielding positive results for the market. “Confidence is gradually easing its way and we know that even in the capital market, there are lot of reforms in the making as SEC , NSE are also spearheading a number of reforms .So all those put together is changing the dynamics of how these foreign investors now see the Nigerian Capital market”.
