CEM REPORT, MARKET | Foreign Investors have significantly been riding on the exchange unification and taking positions in key fundamental equities on the Nigerian Exchange. Foreign investors have seemly stayed strong in the equities market, transacting a whopping 14.15 per cent out of the overall ₦262.56 billion ($351.203 million) in August 2023.
Domestic investors remain largely in control with 85.85 per cent of the overall, however, foreign investors transactions did not fall far off as domestic investors transactions in the review month using the previous month as a yardstick.
According to “domestic & foreign portfolio participation in equity trading” statistics by NGX, domestic transactions decreased by 65.97 per cent while total foreign transactions decreased marginally by 8.34 per cent.
“The total transactions executed between the current and prior month (July 2023) revealed that total domestic transactions decreased by 65.97 per cent from ₦662.44 billion in July to ₦225.40 billion in August 2023.
“Similarly, total foreign transactions decreased marginally by 8.34 per cent from ₦40.54 billion (about $52.58 million) to ₦37.16 billion (about $47.94 million) between July 2023 and August 2023.”
Notably, the nation’s bourse recorded a decrease of 62.65 per cent from what it recorded in the preceding month of July 2023.
“As of 31 August 2023, total transactions at the nation’s bourse decreased by 62.65 per cent from ₦702.98billion (about $991.91 million) in July 2023 to ₦262.56billion (about $338.13 million) in August 2023.”
Also worth noting is that both the foreign and domestic investors traded ₦2.4 trillion in stocks in Year-till-Date from ₦1.89 trillion in the corresponding period of 2022.
A further breakdown of the report reveals that the performance of the current month when compared to the performance in August 2022 (₦123.97 billion) revealed that total transactions increased by 111.79 per cent. In August 2023, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 72per per cent.
In 2022, total domestic transactions made up around 84 per cent of all transactions, while total overseas transactions made up about 16 per cent of all transactions. Additionally, during the first eight months of 2023, there were ₦2.194 trillion in total domestic transactions and ₦222.78 billion in total international transactions.