Foreigners raise stake in Nigeria’s equities with over N1trn worth transactions
In eleven months to November 2017, foreign equity buyers invested approximately N598.82billion in Nigeria’s equities market as against N237.03billion recorded in same period of 2016. The record foreign inflow was against an outflow of N402.26billion in same period –which implies that in the eleven months period foreign investors accounted for transactions worth N1.001trillion.
Month-on-month (mom), foreign inflows into Nigerian equities market increased by 129.93percent from N39.56 billion in October 2017 to N90.96 billion in November 2017. Foreign outflows also increased by 110.61percent from N28.08 billion in October 2017 to N59.14 billion in November 2017.
Total transactions at the nation’s bourse significantly increased by 117.88percent from N127.82 billion recorded in October 2017 to N278.49 billion (about $0.91 billion) in November 2017. The aggregate value of transactions – from January to November 2017 –increased by 95.45percent from N1.055 trillion recorded in 2016 to N2.062 trillion in 2017.
On a monthly basis, the Nigerian Stock Exchange polls trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows.
The institutional composition of the domestic market increased by 158.36percent from N33billion recorded in October to N85.26billion in November 2017. The retail composition also increased by 58.68percent from N27.18billion to N43.13billion within the same period. This indicates a higher participation by institutional investors over their retail counterparts.
Foreign investors outperformed domestic investors by 7.8percent. Total foreign transactions increased significantly by 121.91percent from N67.64 billion recorded in October 2017 to N150.10 billion in November 2017. Total domestic transactions increased by 113.34percent from N60.18 billion to N128.39 billion within the same period.
Since 2011, foreign transactions on the Nigerian bourse have consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016, accounting for 55percent of the total transaction volume in 2016. Also, foreign transactions further declined by 66.34percent from N1.539tin 2014 to N518billion in 2016, representing about 45percent of total transactions in 2016. Over the nine (9) year period, domestic transactions have significantly decreased by 82.17percent from N3.556trillion in 2007 to N634billion in 2016.
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