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Nigeria records N1.88trn worth of equities transactions in 8 months

NGX Group, corporates seek Government’s intervention in manufacturing sector

In eight months to August 31, 2022 stocks worth N1.887trillion were traded on the Nigerian Exchange Limited (NGX), compared to N1.213trillion in the corresponding eight months period in 2021.

Domestic investors remained king in the record value of trade accounting for N1.585trillion (84.03percent) as against N 950.76billion (78.87percent) in the corresponding eight months period in 2021; while foreign investors accounted for N301.37billion (15.97percent) as against N262.85billion (21.13percent) in eight months to August 2021.

Foreign inflow into the Nigerian stock market in the review eight months period was N149.97billion while foreign outflow was N151.40billion, compared to foreign inflow of N123.46billion and outflow of N139.39billion in eight months to August 2021.

Domestic retail investors traded stocks worth N522.60billion in the review eight months while domestic institutional investors were responsible for equities deals worth N1.063trillion in the same period under review, a remarkable increase from N404.77billion and N545.99billion respectively recorded by both domestic investors in eight months to August 2021.

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

Read also: Stock market sheds N13bn as negative sentiment persists

As at August 31, 2022, the total transactions at the nation’s bourse increased month-on-month (MoM) by 22.52percent from N101.18billion (about $236.86million) in July 2022 to N123.97billion (about $289.04million) in August 2022. The performance of the review month when compared to the performance in August 2021 (N89.42billion) showed that total transactions increased by 38.64percent. In August 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 54percent.

A further month-on-month analysis of the total transactions executed between August and July 2022 showed that total domestic transactions increased significantly by 33.93percent from N71.50billion in July to N95.76billion in August 2022. However, total foreign transactions decreased by 4.95percent from N29.68billion (about $69.47million) to N28.21billion (about $65.77million) between July 2022 and August 2022.

Also, month-on-month, the Institutional Investors outperformed Retail Investors by 16percent. A comparison of domestic transactions in August and July 2022 showed that retail transactions increased by 29.89percent from N30.65billion in July to N39.81billion in August 2022. Similarly, the institutional composition of the domestic market increased by 36.94percent from N40.85billion in July 2022 to N55.95billion in August 2022.