Nigeria's annual equities turnover hits 10-year high at N2.88tr

• Published date: 16 January 2023
• Publication title: Nigeria - The Nation

Foreign and domestic investors increased their stakes on Nigerian equities by about 51.9 per cent to N2.88 trillion in 2022, the highest yearly transaction value in a decade.

The Nation's Market Intelligence reports that total equities turnover at the Nigerian Exchange (NGX) last year stood at N2.884 trillion, 51.87 per cent above N1.899 trillion recorded the previous year and about 7.8 per cent above 2014's second highest turnover value of N2.676 trillion.

While the market awaits the official release of trading and primary data next week, independent data research and analysis by The Nation's Market Intelligence indicated that the equities market recorded its second largest yearly percentage growth in a decade in 2022, spiraling to a 10-year high of N2.884 trillion.

After it dropped consecutively to a three-year low in 2016, the equities market had jumped by 68.3 per cent in 2017 to its third best performance in a decade.

Transaction value at the Nigerian equities market rose by 30.47 per cent from N2.051 trillion in 2013 to N2.676 trillion in 2014. It dropped consecutively to N1.906 trillion and N1.511 trillion in 2015 and 2016. In 2017, the market recovered to N2.543 trillion, but dropped consecutively to N2.404 trillion and N1.928 trillion in 2018 and 2019 respectively.

Trading value at the equities market rose by 12.45 per cent to N2.168 trillion in 2020, but dropped by 14.2 per cent to N1.899 trillion in 2021.

Chief Operating Officer, GTI Capital, Mr. Kehinde Hassan, said the increase in turnover in a year that the market delivered a world-ranking return was further indication of investors'appetite for Nigerian equities.

According to him, a positive correlation between price increase and turnover shows a remarkable underlying bullish sentiment as turnover typically has a moderating influence on pricing trend.

He said it was noteworthy that the increase in activities at the market was driven by domestic investors; expressing optimism that increasing domestic participation will further deepen the Nigerian market and insulate it from extreme volatility driven by foreign variables.

He noted the need for all stakeholders to remain committed to the development of the market, adding that government should use its fiscal policies to support the growth of the market.

Nigerian stock market closed 2022 with a net capital gain of more than N4.45 trillion to investors. With the global stock market at its worst performance in more than a decade, Nigerian equities had...