Foreign investments rose by 59.8 pct in one year

Foreign portfolio investment transactions in the country’s stock market rose by 59.81 per cent by the first half of this year compared to the corresponding period of last year.

The FPI transactions were increased from ₦269.22bn to ₦430.23bn in the 12-month period, market data of the Nigerian Stock Exchange made available to our correspondent on Wednesday showed.

Similarly for the period under review, the total domestic transactions increased by 42.19 per cent from ₦355.19bn to ₦505.03bn.

Thus, total transactions at the nation’s bourse increased by 7.13 per cent from ₦205.61bn recorded in May to ₦220.27bn (about $0.72bn) in June this year. Also, total transactions for the first half of the year increased by 49.78 per cent from ₦624.41bn recorded in the same period of 2016 to ₦935.26bn.

Domestic investors outperformed foreign investors by 7.82 per cent. The total domestic transactions increased by 7.53 per cent from ₦110.42bn recorded in May 2017 to ₦118.74bn in June 2017. Foreign transactions also increased by 6.66 per cent from ₦95.19bn to ₦101.53bn within the same period.

Monthly foreign inflows outpaced outflows. However, foreign inflows decreased by 10.95 per cent or ₦65.93bn in June from ₦73.15bn in May, while foreign outflows increased by 38.09 per cent from ₦22.04bn to ₦35.60bn in the same period.

For the domestic composition of transactions on the Exchange between January and June, the institutional composition of the domestic market decreased by 17.09 per cent from ₦67.95bn recorded in May to ₦56.3bn in June.

However, the retail composition increased by 46.92 per cent from ₦42.47bn to ₦62.40bn within the period. This indicated a higher participation by retail investors over their institutional counterparts for the first time this year.

Since 2011, foreign transactions have consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016, accounting for 55 per cent of the total volume that year.

Also, foreign transactions declined by 66.34 per cent from ₦1.539tn in 2014 to ₦518bn in 2016, representing about 45 per cent of total transactions last year.

Over the nine-year period, domestic transactions had significantly decreased by 85.43 per cent from ₦3.556btn in 2007 to ₦634bn in 2016.

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