The latest report by the Nigerian Exchange Limited says the value of foreign and domestic transactions rose by 61.3 per cent year on year.
Compared to last year, 2021, the total transaction value has risen by 572.350bn from N933.65bn to N1.506tr in 2022.
According to the NGX Regulation Limited report, under its Domestic and Foreign Portfolio Investment (FPI), the data report for May 2022 reveals the transactions and trading figures from market operators.
Despite the high inflation rate, currently, at 17.71 per cent, domestic investors are still seen as the primary drivers of the market.
FPI stands at N201.29bn, showing about 13.37 per cent of the total transactions carried out within the period. Meanwhile, domestic transactions are valued at N1.3tr, representing 86.6 per cent of the total transaction.
Furthermore, the domestic transactions report shows retail transactions gaining N408bn in investment, while institutional investors staked N896.21bn during the period.
“Capital market analysts stated that local investors are taking advantage of the low prices of stocks in NGX to increase their investments. They explained that local investors are increasing their stake in the equities market due to the attractive dividend yield in the market and because of the low yield environment in the fixed income market, a media outfit reported.
The NGX report also noted that the development is good for the local bourse, saying that it would restore credibility and stability to the market, which was hitherto marred by volatility occasioned by the activities of foreign investors.
