By Nkiruka Nnorom
Domestic investors have extended their dominance in the equities market with the value of their investment outstripping that of the foreign investors by 272.16 percent at the end of November, 2020.
Specifically, the domestic investors’ commitment in equities rose to N250.50 billion as against N67.31 billion invested by their foreign counterparts during the same period.
Domestic investors have consistently outperformed their foreign counterparts since the outbreak of coronavirus in Nigeria in February, 2020, a development investment analysts attributed to difficulty in repatriating funds by Foreign Portfolio Investors (FPIs).
While domestic investors’ participation had risen by 224.65 percent between February and November, foreign investors, on the other hand, scaled down their investment by 5.6 percent from N71.34 billion in February, 2020 to N67.31 billion at the end of November.
Analysis of the Domestic and Foreign Portfolio Investors (FPIs) participation in equity trading by the Nigerian Stock Exchange (NSE), showed that domestic investors raised their stakes by 53.5 percent month-on-month (M/M) between October, 2020 and November, 2020, while that of the FPIs fell by 17.6 percent.
Ali Khalpey, CEO, EFG Hermes Frontier, had said in a forum that investors are wary of investing in climes where uncertain policy environment makes it difficult to repatriate funds and cited concerns from investors trapped in Nigeria’s debt market due to low dollar liquidity.
He said: “Liberalisation policies need to be accelerated. You can’t trap people into markets because once they are able to get out, they won’t come back again. Nigeria needs to be compelling to attract needed capital into the country.
“Once you cannot take money out, you cannot put money in. The authority should help companiesto facilitate repatriation of funds.”