Foreign Investors Stake N35bn on Nigerian Stocks in August

Stocks Depreciate

By Dipo Olowookere

In the immediate past month of August 2019, the sum of N34.9 billion entered into the nation’s stock market through foreign portfolio investors (FPIs).

This amount was used to buy local equities at the market in the month under review, higher than the N28.4 billion recorded in July 2019, but lower than the N44.3 billion achieved in June 2019.

In a report released on Wednesday, the Nigerian Stock Exchange (NSE), said the total transactions at the nation’s bourse as at August 30, 2019, increased by 7.51 percent to N121.99 billion from N113.47 billion in July 2019, but lower than N297.25 billion in June 2019.

An analysis of this by Business Post showed that transactions from foreign investors contributed N63.9 billion or 52.38 percent to the total transactions in the month under review, while domestic investors added N58.09 billion or 47.62 percent.

In July 2019, external investors contributed N57.78 billion or 50.92 percent to the total trades worth N113.47 billion, while local investors contributed N55.69 billion or 49.08 percent and in June 2019, international investors added N96.74 billion or 32.55 percent to the N297.25 billion total transactions, while investors in the country added N200.51 billion or 67.45 percent to the value.

In August 2019, a total of N28.98 billion was pulled out of the stock market by foreign portfolio investors, lower than the N29.40 billion in the previous month and also lower than the N52.44 billion taken out in June 2019.

A look at the domestic transactions in the month under review indicated that the value of domestic transactions executed by institutional investors outperformed retail investors by 8.00 percent.

A comparison of domestic transactions in the current and prior month revealed that retail transactions decreased by 5.97 percent from N25.44 billion in July 2019 to N23.92 billion in August 2019.

However, the institutional composition of the domestic market increased by 12.95 percent from N30.25 billion in July 2019 to N34.17 billion in August 2019.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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