Transactions On NGX Gain Traction, Rise To N1.04trn In 5 Months
Amid the price appreciation and bullish sentiments, the total transactions performed by investors on the floor of the Nigerian Exchange Limited (NGX) has so far risen to N1.04 trillion in the first five months of 2023.
According to data obtained from the Domestic and Foreign Portfolio Investment Report of Nigerian Exchange Limited (NGX) for the month of May 2023, the total amount of transactions on Nigerian Exchange Limited (NGX) grew to N322.92 billion in the month of May as against N191.21 billion in the previous trading month, thus representing a 68.88 per cent increase.
The month of January 2023 saw total transactions stand at N195.10 billion. The months of February, March, April and May saw transactions standing at N188.91 billion, N146.22 billion, N191.21 and N322.92 billion respectively.
This meant that the total transactions performed by investors grew to N1.04 trillion in 5 months. Also, total domestic transactions stood at N945.02 billion, whilst total foreign transactions stood by N99.34 billion.
According to analysts who reacted to this development, the huge traction is due to the ongoing reforms in the economy at the moment. The prolonged foreign exchange scarcity, inflation among others had been taking their toll on the Nigerian economy and the capital market which is the barometer of the economy had seen mixed sentiments in transactions in the month under review.
However, on the back of President Bola Tinubu’s comments about removing the fuel subsidy as well as unifying the exchange rate, the market on May 30, 2023, hit the biggest single day gain in two years, rising by 5.23 per cent. The report further revealed that total transactions at the nation’s bourse increased by 68.88 per cent from N191.21 billion (about $413.25 million) in April 2023 to N322.92 billion (about $693.99 million) in May 2023.
The performance of the current month when compared to the performance in May 2022 (N607.45 billion) revealed that total transactions decreased by 46.84 per cent. The total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 76 per cent in the month under review.
Analysis of the total transactions executed between the current and prior month (April 2023) revealed that total domestic transactions increased by 56.37 per cent from N182.74 billion in April to N285.76 billion in May 2023.
Similarly, total foreign transactions increased significantly by 338.72 per cent from N8.47 billion (about $18.31 million) to N37.16 billion (about $79.88 million) between April 2023 and May 2023.
