By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)- Foreign investors in the Nigerian Capital Market (NCM) has increased their transactions to 72.61 percent in the month of February 2015 compared to 52.24 percent recorded in the previous month, according to the latest domestic and foreign portfolio participation report by the Nigerian Stock Exchange (NSE).
The report says monthly Foreign Portfolio Investment (FPI) transaction at the Nigerian bourse increased N99.11 billion at the end of January 2015 to N133.95 billion (about $0.68 billion) at the end of February 2015, up 35.15 percent.
On the contrary, the report noted that domestic investors conceded about 45.22 percent of trading to foreign investors as domestic transactions decreased from 47.76 percent to 27.39 percent.
“In comparison to the same period in 2014, total FPI transactions decreased by 1.71 percent, whilst the total domestic transactions decreased by 19.03 percent,” the report added.
It further affirmed that FPI outflows outpaced inflows which were consistent with the same period in 2014. Overall, there was a 7.15 percent decrease in total transactions in comparison to the same period in 2014,” the NSE disclosed.
According to the report, the institutional composition of the domestic market which was about 33.69 percent at the end of January increased to 53.32 percent at the end of February, whilst the retail composition decreased from 66.31 percent to 46.68 percent in the same period.
The NSE on a monthly basis polls trading figures from major custodians and market operators on their 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).
