ASI Index at Nigerian Stock Exchange dipped by 22.3% in February

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Traders work at the Nigerian Stock Exchange in Lagos, February 13, 2015. REUTERS/Joe Penney

Total Transactions at the Nigerian Stock Exchange decreased by 22.5 percent or N21.2 billion in February according to its Monthly Domestic and Foreign Portfolio equity participation report.

The report showed that total transactions for the period ended 28th February 2017 declined from N95.32 billion recorded in January 2017 to N74.11 billion.

Cumulative transactions (Year to date) also slowed to settle at N169.4 billion from N201.4 recorded in 2016, representing a decline of 15.9 percent.

In spite of a 22.88 percent decrease in domestic transactions from N51.31 billion recorded in January 2017 to N39.57 billion in February 2017, the report stated that domestic investors outperformed foreign investors by 6.78 percent.

Meanwhile foreign transactions also decreased by 21.52 percent from N44.01 billion to N34.54 billion within the same period.

Foreign inflows and outflows were reduced as a 28.79 percent decrease in foreign inflows from N22.61 billion in January 2017 to N16.10 billion in February 2017 was recorded.

Foreign outflows also decreased by 13.83 percent from N21.40 billion in January 2017 to N18.44 billion in February 2017.

A further analysis of the composition of transactions at the exchange showed that the institutional composition of the domestic market decreased by 21.93 percent from N31.19 billion recorded in January to N24.35 billion in February 2017.

The retail composition also decreased by 24.35 percent from N20.12 billion to N15.22 billion within the same period, indicating a more active participation by institutional investors over their retail counterparts in the period under review.

The equities market have for a while become unattractive to investors given the higher yields and safety of the fixed income market, however capital gains from he equities market and the fixed income securities underperformance when compared to stocks over a long term, make the equities market a better preference to younger investors

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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