• Thursday, March 28, 2024
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Investors trade N1.2trn worth of Nigerian stocks in 7 months

Nigerian stocks

In seven months to July 31, 2019, investors traded about N1.201trillion worth of Nigerian equities. This represents a huge decline of about 31percent year-on-year (YoY) when compared with N1.743trillion recorded in the corresponding seven months period of 2018.

This was revealed by the Nigerian Stock Exchange (NSE) in its recently released report which shows the summary of transaction in the review period.

Out of the record N1.201trillion worth of Nigerian equities exchanged in the seven months to July 31, domestic investors were responsible for N670.45billion or 53.44percent of the total.

Out of the total equities trade by domestic investors in the review period, the retail investors accounted for N355.15billion while domestic institutional investors traded stocks value at N315.29billion in the seven months period.

Further check shows that the foreign portfolio investors (FPIs) traded just N530.57billion or 46.56percent of the total value of traded equities in the review period.

Foreign inflow stood at N243.35billion while outflow was N287.22billion.

Looking at the month-on-month (MoM) report, it shows that total transactions at the nation’s bourse in July 2019 decreased significantly by 61.82percent, from N297.25billion in June 2019 to N113.47billion in July 2019.

The performance in the month of July when compared to the performance in July 2018 revealed that total transactions also decreased by 22.31percent.

In July 2019, the total value of transactions executed by foreign investors outperformed transactions executed by domestic investors by just 2percent.

A further analysis of the total transactions executed between the current and prior month (June 2019) revealed that total domestic transactions decreased significantly by 72.22percent from N200.51 billion in June to N55.69 billion.

Also month-on-month, the value of domestic transactions executed by Institutional investors outperformed retail investors by 8percent.

A comparison of domestic transactions in the current and prior month (June 2019) revealed that retail transactions decreased by 83.59percent, from N155.12billion in June 2019 to N25.44 billion in July 2019.

However, the institutional composition of the domestic market reduced by 33.28percent, from N45.34billion in June 2019 to N30.25 billion in July 2019.

 

Iheanyi Nwachukwu