However, statistics showed that foreign investments rose in the period under review, as a total of N133.95bn was invested by foreigners in February 2015.
It represented an increase by N34.84bn or 35 per cent compared to N99.11bn invested at the end of January.
The NSE document states: “Domestic investors conceded about 45.22 per cent of trading to foreign investors as domestic transactions decreased from 47.76 per cent to 27.39 per cent while FPI transactions increased from 52.24 per cent to 72.61 per cent over the same period.”
It added: “The institutional composition of the domestic market which was about 33.69 per cent at the end of January increased to 53.32 per cent at the end of February, whilst the retail composition decreased from 66.31 per cent to 46.68 per cent in the same period.”
Johnson Chukwu, the Managing Director and Chief Executive Officer, Cowry Asset Management Limited said that factors leading to the decline in local investments were both external and internal, adding the trend was likely to continue until the second quarter of 2015.
He explained: “The factors driving the bear run seem to be the declining oil prices; depleting reserves; termination of quantitative easing; likely further tightening of monetary liquidity by the central bank and a possible two-horse unpredictable presidential election in February 2015.These factors are most unlikely to reverse soon, and so, the earliest time one should expect a rebound is the second quarter of 2015, subject to the outcome of the general elections.”
The Head, Research and Investment, BGL Plc, Mr. Femi Ademola, also said that he did not expect the situation to change soon.
He added: “Last year, a lot of retail people came to the market because of what they saw in 2012 and 2013. In one of those years, a major company returned more than 1,000 per cent, which was a good attraction. Unfortunately for them, they have made losses again and may want to run away once more.”
