August 22, 2025/CSL Research

Foreign Portfolio Investment (FPI) transactions rose by 4.8% to ₦145.95 billion (US$95.17 million) in July, compared with ₦139.31 billion (US$91.07 million) in June. This accounted for 8.04% of the total market turnover of ₦1.82 trillion. In contrast, domestic investor participation surged significantly, climbing 161.1% to ₦1.67 trillion (US$1.09 billion) from ₦639.34 billion (US$417.95 million) in June.

Domestic trades represented 91.96% of overall market activity, with the sharp increase largely driven by block transactions. This reaffirmed the dominant role of local investors in supporting the market and mitigating the impact of external shocks.

In July, Foreign Portfolio Investment (FPI) transactions totalled ₦145.95 billion, with inflows dropping to ₦50.48 billion from ₦72.82 billion in June, while outflows rose to ₦95.47 billion from ₦66.49 billion. Domestic institutional activity surged to ₦1.15 trillion in July from ₦364.71 billion in June, comprising 58.8% inflows (₦677.80 billion) and 41.2% outflows (₦474.75 billion).

Retail transactions also increased to ₦516.50 billion from ₦274.63 billion, though outflows (₦281.22 billion) outpaced inflows (₦235.28 billion). Year-to-date (ytd), total transaction value on the NGX stood at ₦6.01 trillion, representing a 94.1% increase from ₦3.10 trillion in the same period of 2024. Domestic investors accounted for ₦4.73 trillion (78.67%) of this sum, slightly lower than 80.68% in 2024, while foreign participation rose to ₦1.28 trillion (21.33%) from ₦598.00 billion (19.32%) a year earlier.

Equity market activities in 2025 have been underpinned by several supportive factors, including robust corporate earnings releases, signs of improvement in key macroeconomic indicators, moderating debt yields, and a wave of regulatory and corporate announcements across strategic sectors. These drivers have helped sustain investor confidence and provided momentum for the market’s recent gains. Nonetheless, risks remain on the horizon.

A key concern is the potential for market overvaluation, with elevated stock prices already prompting bouts of profit-taking on the bourse. In addition, the stickiness of relatively high fixed-income yields continues to pose a competitive threat to equities, as institutional investors may prefer the relative safety and attractive returns of debt instruments over riskier stock market exposures

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