Local investors drive N2.5tn transactions in Nigerian stock market – Report

By Joy Baba-Yesufu

The Nigerian stock market recorded a total domestic transaction value of N2.5tn for the first half of the year.
According to the latest report from the Nigerian Exchange Limited shows the data highlights the increasing dominance of local investors over their foreign counterparts, emphasizing a shift in the dynamics of the Nigerian capital market.
The report shows that domestic transactions accounted for 80.68 per cent of the total market activity, while foreign transactions contributed just 19.32 per cent.
Although foreign participation slightly increased from the 8.62 per cent recorded in the previous year, local investors continue to lead the market. The cumulative N2.5tn recorded in domestic transactions this year represents a growth of about 27 per cent compared to N1.968tn during the same period last year.
A closer look at the monthly figures reveals variations in transaction volumes throughout the year. In January domestic transactions stood at N598.41bn, accounting for 91.85 per cent of the total market activity. February saw a dip, with domestic transactions falling to N292.07bn, making up 81.61 per cent.
Also, March recorded a recovery, as domestic transactions reached N444.28bn, representing 82.50 per cent of total transactions. In April, domestic transactions dropped to N225.40bn or 65.10 per cent of total market activity.
In the period under review, May’s domestic transactions slightly increased to N231.10bn, contributing 65.03 per cent. June recorded N272.36bn in domestic transactions, making up 76.82 per cent of market activity while July witnessed a surge, with domestic transactions rising to N434.09bn, a 59.38 per cent increase from the previous month.
The rise in July’s figures was driven by increased retail investor participation, which saw a 138.48 per cent growth from N114.02bn in June to N271.92bn in July. Institutional investor activity also grew, albeit more modestly, by 2.42 per cent, from N158.34bn in June to N162.17bn in July.