Home Stocks & Shares Foreign participation in Nigeria’s equity market surpasses local participation for 3 consecutive...

Foreign participation in Nigeria’s equity market surpasses local participation for 3 consecutive months

Foreign participation in Nigeria’s equity market surpasses local participation for 3 consecutive months

The latest portfolio investment report by the Nigerian Stock Exchange has shown that transactions by foreign investors stood at 66.77% in September, up from 52.38% in the preceding month. On the flip side, transactions by domestic investors stood at 33.23%, down from 47.62% in August.

Based on the foregoing, transactions by foreign investors outperformed those of their local counterparts by 34.00%. This is the third consecutive month foreign portfolio participation in the Nigerian equity market has been on the increase. Meanwhile, participation by local investors has declined consecutively since July.

Further details: In specific terms, the total transactions by foreign investors increased from N63.90 billion in August 2019 to N94.45 billion in September 2019. Transaction by domestic investors, on the other hand, decreased from N58.09 billion in August to N47 billion in September.

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Altogether, total transactions on the Nigerian Stock Exchange in September increased by 15.95% to N141.45 billion, up from N121.99 billion. Foreign investors are mostly responsible for this increase.

“As at 30 September 2019, total transactions at the nation’s bourse increased by 15.95% from N121.99 billion (about $398.0 million) in August 20195 to N141.45 billion (about $461.50 million) in September 2019.

“A further analysis of the total transactions executed between the current and prior month (August 2019) revealed that total domestic transactions decreased by 19.91% from N58.69 billion in August to N47.00 billion in September 2019.

“However, total foreign transactions increased by 47.81% from N63.90 billion (about $208.4million) to N94.45 billion (about $308.2million) between August and September 2019.”

The Nigerian Stock Exchange tracks foreign and domestic portfolio investment on a monthly basis. Over the last twelve years, checks by the NSE confirms that foreign transactions increased by 97.88% while those by domestic investors decreased by 66.68%.

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