The total value of transactions of listed securities on the Nigerian Stock Exchange in 2012 stood at N1.32tn.

This amount represents a marginal increase of N5bn or 3.9 per cent compared to the N1.27tn recorded at the end of 2011.

The total transactions represent the aggregate purchases and sale of listed securities within a defined period.

Information obtained by our correspondent from the NSE showed that the N1.32tn was made up of both foreign portfolio investments and domestic investments.

The total foreign portfolio investments for the year stood at N808.4bn, representing 61.4 per cent transactions from foreign investors; while domestic investments stood at N508.6bn, representing 39 per cent transactions from local and retail investors.

In 2011, FPIs had accounted for 66.8 per cent of the N1.27tn worth of transactions recorded in the stock market, while domestic investments represented 33.2 per cent.

Acknowledging the volume of trading on Wednesday, the Director-General, Securities and Exchange Commission, Ms. Arunma Oteh, said the various actions and reforms undertaken by the regulators to grow the market in the last few years had impacted positively on activities.

She said the Exchange had become more transparent in its dealings and activities, which had brought about increase in investors’ confidence in the market.

Oteh said, “We are excited about the market and the future prospects of our market, because people have come to recognise the importance of the capital market to transforming the economy, and that is what happens after one has had a bad experience like we did in Nigeria a few years ago.

“The good news is that we are on course to having the strongest and best performing capital market in the world. And the gains recorded in our market are not driven by euphoria but by fundamentals, which will get even stronger going by the feedback we have been getting. We are also excited that the domestic investors are showing good signs of return to our market.”

The Chief Executive Officer, NSE, Mr. Oscar Onyema, said there had been increased participation in the market by both local and foreign investors, adding that this had translated into increased transactions on the Exchange.

He said, “The rally we saw in the market in 2012 was on the back of foreign investments. It is also good that our local investors have started to return to the market and we are very hopeful that we will see more of this in 2013. We at the Exchange are bullish that the market will pick up further this year.

“It is important to state here that the Nigerian stock market has been cleaned up to give good returns to foreign investors and our market is too big to be ignored by foreign investors who are looking to take advantage of the opportunities offered by the African markets and other emerging economies, and this is what has kept these investors.”

Speaking on the prospects of the market for the year 2013, the Chief Executive Officer, Partnership Investment Company Plc, Mr. Victor Ogiemwonyi, said the indices of the market were strong to ensure another year of positive returns for investors.

He said, “Going forward, we expect the stock market to perform well in 2013 due to a number of far-reaching initiatives by the regulators.

“Also, confidence boosting measures by the NSE in trying to enforce compliance by listed firms in filing quarterly reports will no doubt buoy the market.”

http://www.punchng.com/business/business-economy/nse-recorded-n1-32tn-transactions-in-2012/