By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Foreign investors has increased its participation on the Nigerian Stock Exchange (NSE) 90.48 percent to N107.47 billion from N56.42 billion recorded a year ago, according to the NSE’s latest report on the total foreign transactions.
There was significant increase in Foreign Portfolio Investments (FPI) transactions from 34.24 percent in June to 62.91 percent in July.
Whilst the total domestic transactions decreased by 62.23 percent, FPI outflows outpaced inflows which was not consistent with the same period in 2014, the report affirmed. Overall, there was a 23.80 percent decrease in total transactions in comparison to the same period in 2014.
Monthly FPI transactions at the nation’s bourse which was N69.65 billion at the end of June 2015 increased to N107.47 billion (about $0.55 billion) at the end of July 2015, up 54.30 percent from June 2015.
On the contrary, the report shows that domestic investors conceded about 25.82 percent of trading to foreign investors as domestic transactions decreased from 65.76 percent to 37.09 percent compared to FPI transactions which increased from 34.24 percent to 62.91 percent over the same period.
The report indicated foreign portfolio investors’ inflows accounted for 28.47 percent of total transactions while the outflows accounted for 34.44 percent of the total transactions in July 2015.
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 total transactions in 2014 (An increase of 42.7 percent over the seven (7) year period).
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 (7) year period).
On a monthly basis, the NSE 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 Nigerian bourse (equities only).
