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BusinessDay
Nigeria's leading finance and market intelligence news report.

Local investors outshine foreigners in Nigeria’s 9-month equities deals

….account for N1.04trn worth of deals

In nine months to September 30, 2021 total value of equities traded on the Nigerian Exchange Limited (NGX) was N1.33trillion, though it represents a slight decrease compared to N1.34trillion same period in 2020, according to the latest domestic and foreign portfolio investment report.

Out of this record total value of equities traded in the review third-quarter (Q3) of 2021, local/domestic investors accounted for N1.04trillion or 78.43 percent of total trade in the review third-quarter (Q3), higher than N825.94billion in Q3’2020.

Domestic retail investors traded stocks worth N436.53billion in Q3, while domestic institutional investors accounted for N608.03billion worth of equities transactions.

In Q3’2020, domestic retail investors traded equities worth N381.25billion while their institutional counterparts traded stocks value at N444.69billion in Q3’2020.

Read also: Stocks gain N237bn as investors buy ahead of Q3 scorecards

Unlike the local investors, foreign portfolio investors (FPIs) continued to shy away from Nigeria’s equities as they traded stocks worth only N287.2billion or 21.57percent of the total value of trade in Q3’2021. Foreigners had in Q3’2020 traded Nigeria stocks worth N510.25billion.

Total foreign inflow into Nigeria’s equities in the Q3 period was just N135.39billion as against N175.31billion in Q3’2020, while outflows printed higher at N151.81billion compared to outflow of N334.94billion in Q3’2020.

Over a 14 year period, domestic transactions decreased by 59.54percent from N3.556trillion in 2007 to N1.439trillion in 2020 while foreign transactions increased by 18.45percent from N616billion to N729billion over the same period.

Total domestic transactions accounted for about 74percent of the total transactions carried out in 2020, while foreign transactions accounted for about 26percent of the total transactions in the same period.

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