Amid uncertainty, insecurity, sustained foreign exchange liquidity challenge and other macro economic challenges, foreign investors’ appetite for stocks have continued to wane, even as participation from domestic investors accounts for 84 per cent of total transactions conducted on the Nigerian Exchange Limited .
Consequently, the All-Share Index advanced by 5.80% at the close of transactions on February 20, 2023, maintaining a bullish run since September 2022. Analysts noted that this was partly as a result of unimpressive yield in fixed income securities, pushing investors to buy up fundamentally strong stocks with attractive dividend yields.
However, some analysts have advised cautious trading as the 2023 elections approach but maintained their positive outlook on dividend yields and capital appreciation in bellwether stocks. Another investment research analyst from Investment One Capital Management Limited, Akosile Oluwasanmi noted that uncertainties around the elections and the cash crunch in the economy could dampen investor sentiment into taking profits but added that positive corporate earnings could also see investors increasing their positions.