May 31, 2024/CSL Research
In its Domestic & Foreign Portfolio Investment Report for April 2024, the Nigerian Exchange Group (NGX) reported a significant year-on-year (y/y) increase in total investor participation, both domestic and foreign. The participation rose by 162.55%, reaching N1.89 trillion in April 2024, up from N721.44 billion in April 2023.
However, on a month-on-month (m/m) basis, the total transactions in April 2024 decreased by 35.71%, falling to N346.23 billion from N538.54 billion in March 2024. This decline was primarily due to reduced domestic participation.
Looking at the data for 2024, investor participation peaked in January, with transactions amounting to N651.52 billion. This spike was likely driven by the anticipation of renewed foreign investor interest following bold reforms implemented by the new administration.
Domestic investors played a dominant role in the market, contributing 82.37% to the total traded value on the local bourse. Consequently, domestic portfolio participation surged significantly by 136.64% year-on-year (y/y), reaching N1.56 trillion in April 2024, up from N659.26 billion in April 2023.
However, on a month-on-month (m/m) basis, domestic participation dropped by 49.27%, falling to N225.40 billion in April 2024 from N444.28 billion in March 2024. Both domestic retail and institutional investors showed nearly matching performances, with institutional participation slightly higher. Domestic institutional investors traded a total value of N788.50 billion in April 2024, up from N461.79 billion in April 2023.
Meanwhile, domestic retail participation amounted to N771.66 billion in April 2024, rising from N197.47 billion in the previous year.
In comparison to its performance in the prior year, foreign participation in the market was higher with a total traded value of N334.01bn in April 2024 from N62.18bn in April 2023.
On a m/m basis, foreign participation increased by 28.19% to N120.80bn in April 2024 from N94.30bn in March 2024. The total foreign inflow was N135.95bn in April 2024 from N21.79bn
in April 2023 while the total foreign outflow recorded in the market was N198.06bn in April 2024 from N40.39bn in April 2023.
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