MARKETS Foreign investors gain N37bn from stock market in 9 months

Foreign portfolio investors (FPI) gained about N36.91billion from the Nigerian stock market in nine months ended September 30, as against N35.81billion in they gained in the corresponding nine m

This type of investors brought N326billion into the Nigerian market in the review period but took away N362.91billion. In nine months to September 2018, these foreign investors moving market at the Nigerian Bourse brought in N477.68billion but exited with N513.49billion.

Foreign Portfolio Investors (FPI) traded N688.9billion worth of Nigerian equities in 9 months to September 30, as against N991.19billion they recorded same period in 2018.

The record mark by foreign investors was achieved after deals valued at N94.45billion were done in September, which represents 66.77percent of the month’s total trade value.

Month- on- month ( MOM), they have consistently exited the market with more than they brought in, except for August 2019 when these investors brought in N34.92billion but took away only N28.98billion.

The total value of stocks traded on the Nigerian Bourse in the review period stood at N1.464trillion representing a decline from N2.007trillion recorded in the corresponding 9 months period of 2018.

The 9 months deals value by foreign investors represents 49.45percent of the total value of equities traded on the Nigerian Stock Exchange (NSE).

In the review 9 months period to September 30, their local counterparts ( domestic investors) downplayed to a record N775.51billion in equities traded or 50.55percent against N1.016trillion in the corresponding period of 2018. In September alone, they accounted for just 33.23percent or N47billion worth of stocks.

Analysis of domestic transactions show that the value executed by institutional investors and retail investors were at par.

A comparison of domestic transactions in September and prior month ( August 2019) revealed that retail transactions decreased by 2.34percent from N23.92 billion in August 2019 to N23.36 billion in September 2019.

However, the institutional composition of the domestic market declined more significantly by 30.81percent from N34.17 billion in August 2019 to N23.64 billion in September 2019.

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