Domestic, Foreign Investors’ Total Transaction Hits N322.9bn In May

Domestic and foreign investors in Nigeria’s equities market transacted a total of N322.92 billion in the month of May, 2023. This is as foreign portfolio investors returned to Nigeria’s stock market, raising their stake by huge 338.72 per cent in May 2023.

In the recently released data on domestic and foreign portfolio participation in Nigeria’s equity trading for the month of May, total transactions at the nation’s bourse increased by 68.88 per cent from N191.21 billion in April 5 2023 to N322.92 billion in May, 2023. 

The performance of the current month when compared to the performance in May 2022 (N607.45 billion) revealed that total transactions decreased by 46.84 per cent. 

In May 2023, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 76 per cent.

A further analysis of the total transactions executed between the current and prior month (April 2023) revealed that total domestic transactions increased by 56.37 per cent from N182.74 billion in April to N285.76 billion in May 2023. 

Similarly, total foreign transactions increased significantly by 338.72 per cent from N8.47 billion to N37.16 billion between April 2023 and May 2023.

Institutional Investors outperformed retail investors by 38 per cent and a comparison of domestic transactions in the current and prior month (April 2023) revealed that retail transactions increased by 19.29 per cent from N74.19 billion in April to N88.50 billion in May 2023. 

Similarly, the institutional composition of the domestic market increased significantly by 81.72 per cent from N108.55 billion in April 2023 to N197.26 billion in May 2023. 

Upon his inauguration on May 29, 2023, President Tinubu signaled an economic direction with a highpoint in removal of fuel subsidy and subsequent announced a foreign exchange market reform which caused a wave of excitement across the private sector as well as the domestic and foreign investors.

Group CEO, NGX Group, Oscar Onyema expressed optimism over the possible impact of the policy changes on foreign portfolio investment inflow into the market.

The chief executive officer of Crane Securities Limited, Mike Ezeh said the emergence of President Bola Tinubu further energised the market since market participants have hope in his ability to rejig the economy and implement economy friendly policies.

Vice president of Highcap Securities, David Adonri said the monumental gain was driven majorly by sentiment arising from the smooth handover and Tinubu bold economic policy changes.

“His prompt change of security chiefs also boosted investors’ confidence. The removal of Godwin Emefiele as CBN governor was another icing on the cake which impressed investors. All these added to the usual end of quarter rally to propel the equities market,” he added.