The domestic and foreign investors’ transaction on the Nigerian Stock Exchange (NSE) amounted to N1.597 trillion in the first half of the year.
New report by the NSE on domestic and foreign portfolio participation in equities trading for June 2018 showed that the cumulative transactions from January to June, 2018 increased by 70.78 per cent from N935.26 billion recorded in 2017 to N1.597 trillion in 2018.
On a monthly basis, the NSE polls trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows.
Also, in the first half of the year, total foreign transaction stood at N799.70 billion higher than total transaction of domestic at N797.47 billion. Total foreign inflows for period stood at N380.65 billion, while outflow stood at N419.06 billion.
Further analysis showed that total transactions at the nation’s bourse declined to N187.78 billion in June 2018 from N318.27 billion in May 2018, foreign transactions fell to N102.41 billion from N192.95 billion, constituting 54.54 per cent down from 60.62 per cent of the total trade, while domestic transactions also decreased to N85.37 billion from N125.32 billion.
Foreign portfolio outflow fell month-on-month (m-o-m) by 58.40 per cent to N54.45 billion in June 2018 while foreign portfolio inflow declined m-o-m by 22.72 per cent to N47.96 billion in June 2018. On the domestic front, institutional transactions declined m-o-m by 38.89 per cent to N56.24 billion in June 2018, constituting 65.88 per cent from 73.44 per cent of the total domestic transactions while the retail transactions declined m-o-m by 12.53 per cent to N29.12 billion in June 2018.
Cowry Asset Management noted that in another development, the Monthly Business Expectations survey report for July 2018, released by the Central Bank of Nigeria (CBN) showed that business owners were more optimistic on Nigeria’s macro-economic outlook for the month of August 2018 than in the month of July 2018.
The overall business confidence index for July and outlook for August were positive but declined to 13.6 points from 34.7 points in June and 58.7 points from 64.9 points respectively; reflective of the decreased volume of total order book in July and the expected slight decrease in volume of business activity in August as their index points moderated to 3.5 points from 16.4 points and 66.2 points from 66.7 points respectively.
The survey according to Cowry revealed that amongst other conditions, unclear economic laws, insufficient demand and unfavorable political climate constrained business activity in the month of July 2018 while the relative stability in exchange rate witnessed in July 2018 is expected to improve in August 2018.
Cowry Asset Management said, “we agree with the lower optimism expressed by private businesses on the country’s macro-economic in the short term as politics gets priority over economic matters ahead of the 2019 general elections. More so, the strain in working capital occasioned by limited access to credit would stifle business performance.
“We opined that the domestic institutional investors, especially the pension fund administrators, following implementation of the pension multi-fund structure in July, have continued to demonstrate the willingness and capacity to buy the shares dumped by foreign portfolio investors as they become cheaper despite the political uncertainty.”
Edo House Of Commotion And NASS Intervention
The unending supremacy battle for the soul of Edo State House of Assembly between Governor Godwin Obaseki and his predecessor...
Govs Laud US Food Security Initiative, Assistance
Governors of 11 states of the federation yesterday in Abuja commended the United States government for its assistance in ensuring...
Laundered Funds Used To Finance Terrorism – PMB
President Muhammadu Buhari has drawn a nexus between the security challenges facing Nigeria and other African countries and laundered funds,...
The 18 Women Holding Out Against 451 Men In 9th NASS
The National Assembly has a total of 469 lawmakers elected from all the 36 states of the federation and the...
World Bank To Support More Projects In Kogi
The World Bank Group yesterday pledged more support for Kogi State to facilitate its development and eradicate poverty among the...
Zamfara Gov Lauds NAF Over Bandits Negotiation
Zamfara State governor, Dr Bello Matawale, has commended the Nigerian Air Force (NAF) for the role it played in helping...
Court Adjourns Hearing On El-Zakzaky’s Application For Medical Trip
Kaduna State High Court yesterday adjourned hearing in the application for permission to travel to India for medical attention filed...
NEWS15 hours ago
JUST IN: APC Expels National Vice Chair Over Anti-party
NEWS13 hours ago
I Defiled My 15-year-old Daughter To Protect Her, Says Night Guard
NEWS21 hours ago
Yoruba Youths Back Northern Elders On Return Of Herdsmen
NEWS15 hours ago
Man Bails Girlfriend Arrested For Biting His Manhood In Lagos
METRO12 hours ago
Sanwo-Olu, Fashola, Harp On Multimodal Transportation System In Nigeria
NEWS13 hours ago
Order To Shut Down Edo State House Of Assembly Is Unconstitutional – PDP
OPINION21 hours ago
Is Kogi Going The Way Of Zamfara?
NEWS20 hours ago
Major Defeat In Trump Impeachment Bid