Local investors control 88.22% of N1trn stock deals in 2 months

Local investors accounted for 88.22percent of equities worth N1.009trillion traded on the Nigerian Exchange Limited (NGX) in two months to February 2024.

According to recently released data on domestic and foreign portfolio participation in Nigeria’s equity trading, foreigners traded equities worth N118.92billion or 11.78percent in the review two-month period while domestic investors traded stocks worth N890.48billion or 88.22percent.

Foreign inflow into equities worth N40.71billion while foreign outflow from equities was N78.21billion. Domestic retail investors accounted for stock trading worth N447.52billion while domestic institutional investors accounted for N442.96billion.

On a monthly basis, Nigerian Exchange Limited (NGX) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.

Total transactions at the nation’s bourse as at February 29 decreased by 45.07percent from N651.52billion (about $479.99million) in January 5 2024 to N357.88billion (about $231.70million) in February 2024.

The performance of the current month when compared to the performance in February 2023 (N188.91billion) revealed that total transactions increased significantly by 89.44percent. In February 2024, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 64percent.

Looking at the total transactions executed between February and prior month (January 2024), it revealed that total domestic transactions decreased by 51.20percent from N598.41billion in January to N292.02billion in February 2024. However, total foreign transactions increased by 23.91percent from N53.11billion (about $39.13million) to N65.81billion (about $42.61million) between January 2024 and February 2024.

Retail investors outperformed institutional investors by 10percent. A comparison of domestic transactions in the current and prior month (January 2024) revealed that retail transactions decreased by 43.29percent from N285.58billion in January to N161.94billion in February 2024. The institutional composition of the domestic market decreased by 58.40percent from N312.83billion in January 2024 to N130.13billion in February 2024.