Total volume transactions at NSE surges by 285% in March
Total volume of transactions at the Nigerian Stock Exchange has recorded a significant increase of 285% percent in the month of March, 2017.
According to data from the nation’s bourse, the increase of 285 percent was from N74.11 billion recorded in February 2017 to N285.05 billion (about $0.93 billion) in March 2017.
Also, the aggregate value of transactions from January to March increased by 52.67% from N297.68 billion recorded in 2016 to N454.48 billion in 2017.
Similar to the month of February, domestic investor’s outperformed foreign investors by 7.02% in March 2017, an indication of growing financial literacy and improving investor confidence.
Domestic transactions increased by 285.49% from N39.57 billion recorded in February 2017 to N152.54 billion in March 2017.
Foreign transactions also increased by 283.64% from N34.54 billion to N132.51 billion within the same period. There was a major increase in foreign outflows from N18.44 billion in February 2017 to N108.87 billion in March 2017.
Foreign inflows also increased by 46.83% from N16.10 billion in February 2017 to N23.64 billion in February 2017.
A further analysis of the composition of transactions at the exchange showed that the institutional composition of the domestic market increased significantly by 428.8 percent from N24.35 billion recorded in February to N128.77 billion in March 2017.
The retail composition also increased by 56.17 percent from N15.22 billion to N23.77 billion within the same period, indicating a significantly higher participation by institutional investors over their retail counterparts in the period under review.
According to financial analysts who reviewed the recent trend, the equities market which had for a while become unattractive to investors is beginning to gain traction on the signals of a gradually recovering economy, as indicated by the most recent PMI survey results from the Central Bank of Nigeria, as well as better-than-expected January-March earnings, which currently motivates risk appetite.
