Foreign investors interest in Nigeria stocks seen rise in Q1

In first-quarter (Q1) of 2024, foreign investors participation in Nigeria’s equities increased year-on-year (YoY) compared to Q1’23, summary of transactions as at March 31, 2024 showed. In the review Q1’24, foreign investors accounted for 13.77percent of Nigeria’s equities deals while domestic investors accounted for 86.23percent.

This is compared to the first quarter of 2023 (Q1’23), when foreign investors accounted for 10.13percent of equities trade while domestic investors controlled 89.87percent, according to recently released Domestic and Foreign Portfolio Investment Report at the Nigerian Exchange Limited (NGX).

Out of the total N1.547trillion worth of equities traded on the Nigerian Bourse in Q1’2024, foreign investors traded stock worth N213.18billion, while domestic investors traded N1.334trillion worth of equities. This is compared to Q1’23 when the market recorded N530.23billion of stocks deals of which N53.71billion was accounted for by foreigners while the local investors traded equities worth N476.52billion.

The Domestic and Foreign Portfolio Investment Report is prepared on a monthly basis by NGX Regulation Limited, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. These transactions are carried out by Domestic and Foreign investors. The Domestic investors are further categorised into Retail and Institutional investors.

In the review first quarter of 2024, foreign inflow was N93.37billion while foreign outflow was N119.81billion. Domestic retail investors accounted for N670.89billion in Q1’24, while domestic institutional investors traded equities valued at N663.87billion.

Meanwhile, in same first quarter (Q1) period of 2023, foreign inflow was N18.12billion while foreign outflow was N35.59billion. Domestic retail investors controlled N123.28billion equities deals in Q1’23, while domestic institutional investors were responsible for stock deals worth N353.24billion in Q1’23.