Investor Education Will Encourage Retail Investor Participation in Equities
Regulatory steps geared towards deepening
investor education across the nation will increase retail investors’ participation in the Nigerian equities market.
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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 and education.
“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.
Investor Education Will Encourage Retail Investor Participation in Equities
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