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NSE records 60% domestic transactions as expatriates shun market

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NSE completes demutualisation but the work has just begun

Domestic investors are responsible for the lion share of total transactions at the Nigerian Stock Exchange (NSE) following exodus of foreign investors from the market.

According to Oscar Onyema, the Chief Executive Officer of the NSE, from its hitherto low performance, local investors’ participation in the stock market has increased to 60 per cent of total activities.

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 increased 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.”

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