Foreign Investors’ Transactions Increase To N744bn In 10 Months

The total transactions by foreign investors on the Nigerian Exchange Limited went up to N744.34 billion in the first 10 months of 2024.

The NGX revealed this in its Domestic and Foreign Portfolio Investment Report made available to the investment public in Lagos.

On a monthly basis, the Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.

Foreign investors’ transactions on the NGX reached a total of N744.34 billion from January to October, 2024, which was an increase by 156 percent Year-on-Year (YoY) when compared to the N291.38 billion recorded in the first 10 months of 2023.

This significant rise is linked to the Central Bank of Nigeria’s (CBN) reforms in the foreign exchange market, which have enhanced foreign investor participation.

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Also, total transactions at the nation’s bourse from January to October stood at N4.471 trillion as against N2.933 trillion achieved in the first 10 months of 2023.

In the period under review the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors.

A further analysis of the total transactions executed between the January to October revealed that domestic transactions rose to N3.727 trillion, amounting to 83.35 per cent of the total transaction, while foreign investors control 16.65 per cent of total transaction.

Meanwhile, foreign investors inflow amounted to N344.30 billion, while foreign investors moved N400.04 billion fund out of the stock market.

Over a 17 year period, domestic transactions decreased by 10.94 per cent from N3.556 trillion in 2007 to N3.167 trillion in 2023; whilst foreign transactions also decreased by 33.28 per cent from N616 billion to N411 billion over the same period.

Total domestic transactions accounted for about 89 per cent of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11 per cent of the total transactions in the same period.

Speaking on this, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion said that while expect domestic investors to continue to contribute the most to total transaction value, buying activities will be constrained by elevated yields in the fixed income market following the Monetary Policy Committee’s tight monetary policy stance.

“On the other hand, we expect the improved FX market liquidity and reduced naira volatility to support foreign investor participation in the equities market”, he added.