By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Total foreign outflow recorded at the Nigerian Stock Exchange (NSE) in 2014 increased 65.7 percent to N846.53 billion from N510.78 billion recorded in 2013, according to data available on the website of the NSE.
The NSE polls trading figures from major custodians and market operators on their Foreign Portfolio Investments (FPI).
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the NSE equities only.
As at the month of December 2014, total foreign outflow was N53.36 billion compared to N37.17 recorded in December 2013; indicating a 43.55 percent increase in the review period.
“In 2014, foreign outflows exceeded inflows by 22%. However, in December 2014, there were more foreign inflows than outflows. Also the outflows in December were significantly smaller than the outflows in the previous months,” the NSE report noted.
On the contrary, total foreign inflow in 2014 end was up 30.32 percent to 692.39 billion from N531.26 billion in 2013 end.
The NSE reported that total foreign transactions increased by 47.68 percent from N1, 042.04 billion recorded at the end of 2013 to N1, 538.92 billion at the end of 2014; while total domestic transactions increased by 12.63 percent from N1, 009.16 billion recorded at the end of 2013 to N1, 136.63 recorded at the end of 2014. “Domestic transactions rebounded in December,” the NSE added.
According to the report, total FPI transactions of N616 billion which accounted for 14.8 percent of total transactions in 2007 increased over the years to N1,539 billion representing 57.5 percent of the total in 2014 (An increase of 42.7 percent over the seven year period).
It said domestic transactions on the other hand started at N3,556 billion representing 85.2 percent in 2007, but decreased significantly to N1,137 billion representing 42.5 percent of total transactions in 2014 (A sharp decline of 42.7 percent in the seven year period).
Total transactions at the Nigerian bourse in 2014 was N2.675 trillion compared to N2.051 trillion recorded in 2013; indicating a growth of 30.4 percent.
Foreign investors are exiting the Nigerian stock market due to the falling global oil prices, activities of insurgents in the north east of Nigerian, the fear of the outcome of 2015 general elections and the devaluation of the naira.
