Foreign Investment in Stock Market Declines by 40.4% to N145.1bn in H1’23
Foreign investment into the stock market, Nigerian Exchange Limited, fell Year on Year, ( YoY) by 40.4% to N145.08 billion in the first half, HI’23 from N243.48 billion in H1’22.
The decline reflects low investors confidence in the Nigerian economy, driven by prolonged Foreign Exchange, FX scarcity as well as uncertainties building up to the 2023 elections.
The Nigerian Exchange Limited, NGX disclosed this yesterday in its report on Domestic and Foreign Portfolio Investment report for June 2023.
The report also showed that the domestic investment also fell by 7.9 % to N1.306 trillion in HI’23 as against N1.418 trillion in the corresponding period H1’22.
But on a Month-on-Month basis, the NGX report showed that foreign investment grew by 23.1% to N45.74 billion in June 2023 as against N37.16 billion in May 2023. In the same manner domestic investment grew to N361.01billion in June 2023 from N285.76 billion in May 2023.
The report also revealed that total transactions at the nation’s bourse increased by 25.96 per cent from N322.92 billion (about $693.99 million) recorded in May 2023 to N406.75 billion (about $537.87 million) in June 2023. The performance of the current month when compared to the performance in June 2022 (N156.52 billion) revealed that total transactions increased by 159.87 per cent.
Furthermore, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 78 per cent in June. Domestic inflows and outflows stood at N180.91 billion and N180.11 billion while foreign inflows and outflows stood at N22.72 billion and N23.02 billion.
The report also revealed that institutional investors outperformed retail investors by 32 per cent whilst a comparison of domestic transactions in the current and prior month (May 2023) revealed that retail transactions increased by 40.70 per cent from N88.50 billion in May to N124.52 billion in June 2023.
Similarly, the institutional composition of the domestic market increased marginally by 19.89 per cent from N197.26 billion in May 2023 to N236.49 billion in June 2023.
