Nigeria: Sustained market rally requires domestic retail investors
Dear Africa interested professionals: On April 25, 2016, I wrote an article (can be found as the featured post on this blog or using the search function) and stated that the domestic retail investor will determine the performance of the Nigerian stock market. 2018 has brought more evidence to buttress my assertion. The Nigerian stock market’s most ignored and maligned customer base is the domestic retail investor. This largely ignored customer base determines how the stock market in Nigeria will perform. In January 2018, domestic retail investors put N 106.5B in the Nigerian stock market and the stock market rose approximately 16%. The contribution of domestic retail investors has not even reached half of that figure per month from February to June 2018 and the Nigerian stock market is now in negative territory at approximately 1.6%. Total foreign portfolio investment from January - May 2018 rose by 121% compared to the same period in 2017. Domestic institutional in