Local Investors’ Participation Critical ToSustaining Market Recovery

[Shola Sholaz]

Local investors' participation has been identified as key factor for sustaining the tempo of recovery recorded in the Nigerian Stock Exchange, NSE, in recent times.
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Stockbrokers that spoke to Vanguard on recent developments in the market, where the All Share Index, ASI, and market capitalisation have been on downward stride, said that though statistics showed an increment in level of participation by local investors, but their involvement has been dominated by institutional investors and portfolio managers.
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Data from the NSE on foreign/domestic participation in value terms indicated that Foreign Portfolio Investment, FPI, reduced to 48.7 percent during the month of May, 2013, while domestic transactions increased significantly to 51.3 percent over the same period.
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Analysis showed that FPI, which started at 36.9 percent at the beginning of the year increased to 52.8 percent at the end of the first quarter, 2013.