Tuesday, March 09, 2021 / 11:00AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTVNG
Regulatory steps geared towards deepening investor education across the nation will increase retail investors' participation in the Nigerian equities market.
Mr. Charles Fakrogha, the Chief Operating Officer (COO), Supra Commercial Trust Limited, said this while reviewing the latest report on "Domestic and Foreign Portfolio Investors Activities In Equities Trading"| published by the Nigeria Stock Exchange (NSE).
Fakrogha noted that the COVID-19 pandemic adversely affected retail investor confidence, giving room for institutional investor dominance of the market.
The capital market analyst said that institutional investors had leveraged their superior resources and technology to carry out trading activities that enabled them benefit from hidden-value opportunities.
"Retail investors are expected to drive daily market action, but their restrained attitude towards the market made them less adaptable to the COVID-19 pandemic".
In the area of investments, he reiterated the need for policymakers and regulators in Nigeria to incentivize domestic portfolio investors in the country.
Fakrogha was happy that the tide had changed with domestic investor transactions dominating activities for January 2021 with about 74% of trading transactions. This was in comparison to foreign investor transactions which accounted for about 26% of traded transactions.
The analyst stressed the need for a capital market that thrives on transparency, investor protection, and efficiency, which will attract more foreign direct investments (FDI) into the economy.
The equity market trader advised that key market operators and regulators should leverage technology and strengthen cybersecurity.