Investment Profile On NSE Dips 28.78% | Independent Newspapers Limited
Newsletter subscribe


Investment Profile On NSE Dips 28.78%

Posted: Mar 1, 2016 at 4:56 am   /   by   /   comments (0)

Olisa Egbunike, Lagos

Investment profile (domestic and foreign) on the Nigerian Stock Exchange (NSE) dipped by 28.78 percent or N769.92 million to N1.906 billion in 2015 compared to N2.676 billion recorded in 2014.

An analysis of the nation’s portfolio investment terrain cocooned by the global and national economic and financial challenges indicated that domestic investors have taken a cue from foreign investors in distancing themselves from the Nigerian capital market.

Available figures from NSE showed that foreign interest in the listed equities at the Nigerian bourse dropped by 33.39 percent or N513.85 million to N1.025 billion in 2015 as against N1.539 billion achieved in 2014.

In the same period under review, wearied domestic investors committed only N880.56 billion, a decline of 22.53 percent or N256.07 million compared with N1.136.63 billion recorded in 2014.

Specifically, foreign inflow into the market stood at N470.83 in 2015, a sharp fall of 31.99 percent or N221.56 million from N692.39 billion foreign portfolio investors committed to listed equities in proceeding year.

The year which was characterized by global uncertainties, witnessed sustained capital flight from Nigeria, as foreign portfolio managers took cover by warehousing from the Nigerian bourse only N554.24 billion or 34.53 percent below the N846.53 retrieved from the market in 2014.

Retail investors in the period under review also committed only N382.70, decline of 9.72 percent or N41.2 million from N423.90 billion they invested in the market in 2014.

The NSE published investment facts and figures also showed that domestic institutional investors withheld their appetite for equities by 30.15 percent to N497.86 billion in the period under review as against N712.72 billion they committed in 2014.