In January 2015, Foreign Portfolio Investment (FPI) transactions at the Nigerian Stock Exchange (NSE) declined by 20.39 per cent from the December 2014 level of N124.50 billion. FPI transactions at the beginning of 2015 stood at N99.11 billion. In January 2014, it was N89.67 billion. Also, Total domestic transactions dropped from the December 2014 level of N133.58 billion to N90.61 billion. It was N92.30 as of January 2014.
In January 2015, foreign investors invested N48.03 billion in the Nigerian stock market but pulled out N51.08 billion.
Domestic investors conceded about 4.48 per cent of trading to foreign investors as domestic transactions decreased from 51.76 per cent to 47.76 per cent, while FPI transactions increased from 48.24 per cent to 52.24 per cent over the same period.
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The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transactions on the NSE (equities only).
Total transactions decreased by 26.49 per cent from N258.08 billion in December 2014 to N189.72 billion in January 2015. FPI inflows accounted for 25.32 per cent of total transactions while outflows accounted for 26.92 per cent of total transactions in January 2015.
Every month, the NSE polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI). In comparison to the same period in 2014, total FPI transactions increased by 10.52 per cent, while the total domestic transactions decreased by 1.83 per cent.
FPI outflows outpaced inflows which were consistent with the same period in 2014. Overall, there was a 4.26 per cent increase in total transactions in comparison with the same period in 2014.
Iheanyi Nwachukwu
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