The Securities and Exchange Commission (SEC) has reported that domestic investors executed transactions worth N165.14 billion in the equities market in January.
Ms Mary Uduk, SEC acting Director-General, stated this at the Capital Market Correspondents of Nigeria (CAMCAN) forum, with the theme: ‘Strategies to deepen retail investors’ participation in the Nigerian Capital Market’.
Uduk said that domestic investors’ transactions during the period outweighed foreign investors execution by 40 per cent, which accounted for N70.32 billion.
According to her, breakdown of domestic investors transactions show that the domestic institutional transactions accounted for N83.47 billion, while domestic retail transactions stood at N81.67 billion.
Uduk, represented by Mr Okey Umeano, SEC Head, Office of the Chief Economist, said that the trend re-emphasised the need for increase retail investors’ participation in the market.
She, however, stressed the importance of not allowing uncertainties to dampen the resolve to attain the strong capital market of the nation’s dream.
“In spite of these trends, clearly, the fundamentals of our markets and economies remain solid and promising as astute investors know.
“I, therefore, urge retail investors to leverage on this and invest in the capital market, which is one of the avenues to build sustainable and long-term wealth,”Uduk said.
She said that the commission, in conjunction with other self-regulatory organisations (SROs), had continued to enhance the regulatory framework through various policy reforms and initiatives to boost investors’ confidence.
“There is, therefore, the need for increased participation of local (retail and institutional) investors in the market and for foreign investors to have higher confidence concerning the safety of their investments,” the acting DG said.
Uduk said that the 10-year Capital Market Master Plan (CMMP) was developed in 2015 to map out strategies for improvement of the Nigerian capital market in areas such as investor protection and education, professionalism and product innovation, among others.
She said that the commission this year would drive several market initiatives in a bid to restore investors confidence, thereby increasing participation in the market.
The acting DG listed the initiatives as deployment of Real Time Automated Market Surveillance System; driving the growth of Collective Investment Schemes (CIS); capital market literacy and completion of the infusion of capital market into schools’ curricula.
Uduk added that SEC would ensure robust engagement with sister agencies like the Central Bank of Nigeria, PENCOM, National Insurance Commission and others to ensure consideration of the capital market in policy making.
She said that the commission would leverage the success of the e-Dividend initiative to drive Direct Cash Settlement and solve the multiple subscription problem in the market.
“Notwithstanding the numerous initiatives and strategies being implemented, the commission realises that more still needs to be done.
“Our market’s performance is reasonably influenced by activities of foreign investors such that their instantaneous exit poses a challenge.
“This is a problem faced by many other countries, but efforts are continually being made by the commission to increase retail investors’ participation in the Nigerian capital market.
“The commission believes that there is a nexus between increased market participation and market efficiency,” Uduk said.