Investors have staked about N2.08 trillion on Nigerian equities in the past 10 months, an increase of 34.6 per cent over the corresponding period of 2021.
Trading data at the Nigerian Exchange (NGX) for the 10-month period ended October 31, 2022 showed that total turnover stood at N2.08 trillion in 2022 as against N1.545 trillion recorded in corresponding period of 2021.
The improvement in market turnover was driven mainly by increased activities by domestic investors, especially institutional investors. Total transactions by domestic investors in the past 10 months jumped by 42.3 per cent from N1.215 trillion by October 2021 to N1.73 trillion by October 2022. These indicated that the proportion of domestic investors’ trading to total trading turnover increased from 78.66 per cent in 2021 to 83.19 per cent in 2022.
Retail domestic investors accounted for N580.83 billion in 2022 as against N494.87 billion in comparable period of 2021. Retail institutional investors’ turnover rose by 59.4 per cent from N720.34 billion in October 2021 to N1.15 trillion by October 2022.
While total transactions by foreign portfolio investors improved from N329.62 billion in first 10 months of 2021 to N349.59 billion in first 10 months of 2022, the proportion of foreign transactions to total market transactions dropped from 21.34 per cent in 2021 to 16.81 per cent in 2022.
Pricing trend analysis had shown that investors in Nigerian equities lost about N2.8 trillion in October 2022 as massive selloffs across the sectors pushed most stocks to lower prices.
Benchmark indices at the stock market had shown an average loss of 10.576 per cent for the immediate past month, equivalent to net capital depreciation of N2.797 trillion, its worst performance in recent months.
The massive loss in October exacerbated the downtrend at the stock market, cutting down average year-to-date return from 14.77 per cent by September 2022 to 2.6 per cent in October 2022. Nigerian equities had closed the third quarter ended September 2022 with net capital gain of about N3.3 trillion for the nine-month period.