Foreign Investors Withdrew N481.96bn in 11 Months –NSE

Foreign Portfolio Investors withdrew a total of N481.96 billion from the stock market between January and November 2019.

The latest data obtained from the Nigerian Stock Exchange showed that the N481.96 billion was a 20.41 per cent decrease from the N605.54 billion withdrawn in the corresponding period of 2018.

As of November 30, 2019, total transactions at the nation’s bourse increased by 5.74 per cent from N163.16 billion (about $532.35million) in October 2019 to N172.52 billion (about $562.89million) in November 2019.

The performance in November, when compared to the performance in the same period in 2018, revealed that total transactions increased by 15.23 per cent.

In November 2019, the total value of transactions executed by foreign investors surpassed transactions executed by domestic investors marginally by two per cent.

A further analysis of the total transactions executed in October and November 2019 revealed that total domestic transactions increased by 44.30 per cent from N59.43 billion in October to N85.76 billion in November 2019.

However, total foreign transactions decreased by 16.36 per cent from N103.73billion (about $338.4million) to N86.76 billion (about $283.1million) between October and November 2019.

The value of domestic transactions executed by institutional investors outperformed retail investors by 24 per cent.

A comparison of domestic transactions in October and November 2019 revealed that retail transactions increased significantly by 76.69 per cent from N18.23 billion in October to N32.21billion in November.

However, the institutional composition of the domestic market increased by 29.98 per cent from N41.20 billion in October to N53.55billion in November.

Over a 12-year period, domestic transactions decreased by 66.68 per cent from N3.56 trillion in 2007 to N1.19 trillion in 2018 while foreign transactions increased by 97.88 per cent from N616 billion to N1.22 trillion over the same period.

Total foreign transactions accounted for about 51 per cent of the total transactions carried out in 2018 while domestic transactions accounted for about 49 per cent of the total transactions.

Between January and November 2019, total foreign transactions carried out amounted to N879.40billion while total domestic transactions amounted to N920.70 billion. (Punch)