INSTITUTIONAL INVESTORS COULD FALL IN LOVE FASTER.

Yes, as analysed two days ago by Henates, investors are yet to fall in love with Nigeria's President Buhari but domestic institutional investors are likely to fall in love faster. Or so the figures published by the Nigerian stock exchange on participation in equity trading in 2015 show clearly.
In fact they seemed to have fallen in love in June 2015 as monthly domestic institutional investors participation hit a surprise high of N108.2bn.
Before then the average participation was N37.1bn per month between January and April with top actuals being April's N50.8bn and March's N40.2bn.
However, this very hopeful participation did not last as monthly participation dived to N32.8bn by July and stayed consistently below N40bn till December 2015's N40.2bn.
Compared to N97.5bn domestic institutional investors participated with in December 2014, this was of course more than 50% down.
Indeed, year on year the 2015 figure for domestic institutional investors at N497.9bn was 30.1% down on 2014's N712.7bn.
However, compared to the average of N37.1bn up to April from January, the N44.6bn average between June and December indicate quite clearly that domestic institutional investors could fall in love if Buhari strikes the right cord with his economic policies. This was driven principally by the June all year high.
Domestic retail investors may not be that ready to fall in love quickly.
Apparently they had high hopes between January and April leading to average participation per month of N44.3bn as January and April crossed the average with N60.1bn and N52.1bn participation by domestic retail respectively.
However, just like for foreign investors domestic retail investors participation average dived to 24.9bn after May swear in of Buhari with only July and November being above average. Here too, December ended with all year low, of N19bn.

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