Domestic investors’ participation rose to 60%, says NSE

The participation of domestic investors in the Nigerian capital market has risen to 60 per cent as foreign investors exited the country, the Nigerian Stock Exchange has said.

The Chief Executive Officer, NSE, Mr Oscar Onyema, disclosed this on Wednesday at a webinar, with the theme, ‘Capital markets in a pandemic’.

He said, “During the lockdown, we kept the capital market opened. We immediately activated business continuity plans and luckily for us, the evolution of technology and digitalisation at all capital market globally started before the pandemic. We were able to quickly flip the switch and go completely remote.

“We were reaching out to our dealing member firms via electronically and supporting corporate that are listed on the Exchange and putting out market moving information.”

Onyema said the NSE engaged with policy makers and regulators to provide various palliatives and accommodations for market players to continue to drive liquidity in the market.

“What we have seen as a result is that there has been a significant increase activities in the capital market at secondary level, driven by domestic players,” he added.

Onyema said the remote trading and engagement of market stakeholders was yielding results, with increased domestic investors’ participation as well as federal and state governments’ decision to raise funds through the capital market.

He said, “We have seen domestic players coming into the capital market in the context of foreign players doing flight to safety.

“60 per cent participation in market activities is currently from domestic players, which is a major departure from the last four years where we show 50-50 per cent in terms of market participation by domestic and foreign players.”