The Nigerian Exchange Limited (NGX) has reported a significant increase in foreign transactions in the first half of 2024, with N540.48 billion worth of foreign transactions recorded between January and June.
This represents a substantial rise compared to N145.08 billion reported in the same period last year.
According to the NGX’s ‘Domestic & Foreign Portfolio Investment’ report, foreign investors liquidated more portfolio investments than they purchased during the six-month period, with N311.41 billion worth of portfolio investments liquidated compared to a foreign outflow of N73.06 billion in the corresponding period in 2023.
However, foreign investment inflow accounted for N229.07 billion in H1 2024, against N72.02 billion reported in the same period last year.
“The performance of the current month when compared to the performance in June 2023 revealed that total transactions decreased by 12.83%,” the report reads.
NGX also noted that domestic investors accounted for 79.25% of 2024 H1 transactions, compared to 90% reported in the corresponding period last year, while foreign transactions accounted for 20.75% of the total transactions in H1 2024, compared to 10% in H1 2023.
Commenting on the market’s performance, NGX said: “Over a seventeen (17) year period, domestic transactions decreased by 10.94% from N3.556 trillion in 2007 to N3.167 trillion in 2023; whilst foreign transactions also decreased by 33.28% from N616 billion to N411 billion over the same period.”
The report also highlighted that domestic institutional investors outperformed retail investors by 16% on a month-on-month basis, with retail transactions increasing by 0.43% from N113.53 billion to N114.02 billion between May and June 2024.
Boluwatife Enome
Source: the cable
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