21 January 2013

Nigeria: 2012 - Local Investors Record 44 Percent Participation On NSE

The Nigerian Stock Exchange (NSE) last week said local investors contributed 44.3 per cent of total market activities on its bourse.

Chief Executive Officer of the exchange, Mr. Oscar Onyema said local investors started coming back to the equities market, accounting for 44.3 per ecnt of total market activity as at November 2012, up 38.38 per cent from 2011.

Prior to this time, reports said foreign investors contributed about 70 per cent of daily trading value of equities at the Nigeria's exchange.

Speaking on the outlook for 2013, he said that the year will be largely positive for both the Nigerian economy and the Nigerian capital market as changes implemented in 2012 begin to crystallize in 2013.

"Positive Government initiatives to continue increasing power generation, financial inclusion, agricultural transformation, and strengthening fiscal discipline are expected to carry over into the new year," he said.

He added that by the end of 2013, the NSE expects to be well positioned to adapt its business to meet the needs of clients, and to enable the Nigerian capital market absorb the forces of change reshaping global financial markets and the global exchange landscape.

He further said that investors should expect growth trend experienced in fouth quarter of 2012 to extend into 2013 as investor confidence measures by the NSE mature.

He anticipated that the relative attractiveness of FGN bonds to continue for local and global investors, as a result of record high yields and new attractive issuance.

National bonds will remain in the international spotlight due to their upcoming inclusion into Barclay's Emerging Market Local Currency Bond Index, adding that foreign issuers such as the International Finance Corporation (IFC) would enter the Nigerian bond market, Oscar said.

He also listed that early passage of the national budget, pronouncement to begin investing proceeds of the Sovereign Wealth Fund (SWF) in March 2013, elimination of VAT and stamp duties, expected to take effect in 2013 among others as some of the contributing factors to optimism about the capital market.

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