Nigeria’s equities market lost about N160billion in the trading week ended Friday August 19 as sell-side interest on the Bourse outweighed demand.
In the review trading week, the market decreased by 0.59percent following its four days of losses as against a day gain.
Insurance, consumer goods, oil & gas stocks were mostly on offer while banking and industrial stocks were on demand.
Month-to-date (MtD), the market has decreased by 1.98percent, while the positive return seen this year has decreased to 15.58percent.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation depreciated from week-open highs of 49,664.07 points and N26.787 trillion respectively to 49,370.62 points and N26.628trillion.
In first seven months to July 2022, total transactions done by domestic investors on the floor of the Nigerian Exchange Limited (NGX) grew to N1.490 trillion as against N273.16 billion recorded by foreign investors.
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According to the Domestic and Foreign Portfolio Investment (FPI) July 2022 report which captured these transactions as well as trading figures from market operators, domestic transactions stood at N1.465trillion in the first seven months of 2021 while foreign transactions stood at N435 billion in the same period.
This meant that total domestic transactions on the NGX grew by 1.70 percent while foreign transactions dropped by 37.24 percent.
Although, the July report revealed that total transactions at the nation’s bourse decreased by 35.36percent from N156.52billion (about $371.53million) in June 2022 to N101.18 billion (about $236.86 million) in July 2022, the performance of the current month however, when compared to the performance in July 2021 (N89.77billion), total transactions increased by 12.71 percent.
Furthermore, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 42 percent while domestic inflows and outflows stood at N36.97 billion and N34.53 billion respectively, in the month of July 2022.
On the flipside, foreign inflows recorded N13.68 billion while foreign outflows stood at N16 billion. This decline, according to analysts, is due to the scarcity of FX currently bedevilling the economy.
Since the outbreak of COVID-19, inflows across capital importation, loans, diaspora remittances, exports, income from investments and other autonomous sources have been dwindling.
However, domestic investors have continued to hold its ground on the floor of the NGX despite rising inflation and currency volatility in the foreign exchange market, which remained key drivers of the domestic & foreign portfolio investment.
Over a 15-year period, domestic transactions had decreased by 58.80 percent from N3.556trillion in 2007 to N1.465trillion in 2021 whilst foreign transactions also decreased by 29.38 percent from N616 billion to N435 billion over the same period.
On the other hand, total domestic transactions accounted for about 77 per cent of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23 per cent of the total transactions in the same period.
