- Local investors drive N2.5trn transactions in Nigerian stock market– Report
Equity investors reacted positively to the announcement by Oando Plc that it has concluded its acquisition of Nigerian Agip Oil Company from the Italian energy company, Eni, for a total consideration of $783 million including consideration for the asset and reimbursement.
As a result, Oando Plc, led in terms of traded value on the bourse as investors splashed ₦1.29 billion on its shares on Thursday.
Oando Plc, Nigeria’s leading energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange.
On Thursday, the Nigerian equities market extended its bearish trajectory, with the All-Share Index slipping by 12 basis points to close at 95,718.05 points.
Despite a higher number of gainers (22) compared to losers (18), the market capitalization of listed equities dipped by 0.12 percent, ending the session at ₦54.98 trillion, wiping out ₦65 billion from investors’ portfolios.
Trading activity mirrored the bearish sentiment, as the total number of deals and the traded value declined by 6.47 percent and 19.28 percent, respectively, to 8,243 deals and ₦5.85 billion. However, the total traded volume defied the trend, rising by 9.17 percent to 393.62 million units.
Sectoral performance was largely negative, with the Banking, Consumer Goods, and Oil/Gas indices posting losses of 0.82 percent, 0.11 percent, and 0.46 percent, respectively. Conversely, the Insurance and Industrial Goods indices recorded gains of 0.44 percent and 0.005 percent.
Regarding individual stock movements, ACADEMY (+10.00%), SFSREIT (+10.00%), OANDO (+9.99%), RTBRISCOE (+9.78%), and IMG (+9.09%) emerged as the top gainers, each recording significant share price appreciations. On the flip side, TRANSCOHOT (-10.00%), CHAMS (-9.72%), ETERNA (-9.55%), IKEJAHOTEL (-9.09%), and THOMASWY (-8.88%) led the decliners’ chart.
As the session concluded, UNIVINSURE stood out as the most actively traded stock by volume, with 68.19 million units exchanged in 95 deals.
Local investors drive N2.5trn transactions in Nigerian stock market – Report
Meanwhile, the Nigerian stock market recorded a total domestic transaction value of N2.5trn for the first half of the year.
According to the latest report from the Nigerian Exchange Limited, the data highlighted the increasing dominance of local investors over their foreign counterparts, emphasizing a shift in the dynamics of the Nigerian capital market.
The report showed that domestic transactions accounted for 80.68 per cent of the total market activity, while foreign transactions contributed just 19.32 per cent.
Although foreign participation slightly increased from the 8.62 per cent recorded in the previous year, local investors continue to lead the market.
The cumulative N2.5trn recorded in domestic transactions this year represents a growth of about 27 per cent compared to N1.968trn during the same period last year.
A closer look at the monthly figures revealed variations in transaction volumes throughout the year.
In January domestic transactions stood at N598.41bn, accounting for 91.85 per cent of the total market activity.
February saw a dip, with domestic transactions falling to N292.07bn, making up 81.61 per cent.
Also, March recorded a recovery, as domestic transactions reached N444.28bn, representing 82.50 per cent of total transactions.
In April, domestic transactions dropped to N225.40bn or 65.10 per cent of total market activity.
In the period under review, May’s domestic transactions slightly increased to N231.10bn, contributing 65.03 per cent.
June recorded N272.36bn in domestic transactions, making up 76.82 per cent of market activity while July witnessed a surge, with domestic transactions rising to N434.09bn, a 59.38 per cent increase from the previous month.
The rise in July’s figures was driven by increased retail investor participation, which saw a 138.48 per cent growth from N114.02bn in June to N271.92bn in July. Institutional investor activity also grew, albeit more modestly, by 2.42 per cent, from N158.34bn in June to N162.17bn in July.
While domestic transactions saw growth, foreign transactions experienced a decline. Year-to-date, foreign transactions totaled to N598bn, reflecting reduced interest from foreign investors.
From June to July, foreign transactions dropped by 30.02 per cent, decreasing from N82.19bn to N57.52bn, highlighting the influence of foreign investors in the Nigerian stock market.
Looking at the longer-term trends, between 2007 and 2023, domestic transactions decreased by 10.94 per cent, while foreign transactions fell by 33.28 per cent. This trend illustrated how local investors have progressively taken the lead in market activities, supported by government policies, economic factors, and waning foreign interest.
