Capital flight: Foreign investors withdrew N482bn in 11 months –NSE

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Foreign Portfolio Investors withdrew a total of N481.96bn from the stock market between January and November 2019.

The latest data obtained from Nigerian Stock Exchange showed that the N481.96bn was a 20.41 per cent decrease from the N605.54bn withdrawn in the corresponding period of 2018.

As of November 30, 2019, total transactions at the nation’s bourse increased by 5.74 per cent from N163.16bn (about $532.35m) in October 2019 to N172.52bn (about $562.89m) in November 2019.

The performance in November, when compared to the performance in the same period in 2018, revealed that total transactions increased by 15.23 per cent.

In November 2019, the total value of transactions executed by foreign investors surpassed transactions executed by domestic investors marginally by two per cent.

A further analysis of the total transactions executed in October and November 2019 revealed that total domestic transactions increased by 44.30 per cent from N59.43bn in October to N85.76 in November 2019.

However, total foreign transactions decreased by 16.36 per cent from N103.73bn (about $338.4m) to N86.76bn (about $283.1m) between October and November 2019.

The value of domestic transactions executed by institutional investors outperformed retail investors by 24 per cent.

A comparison of domestic transactions in October and November 2019 revealed that retail transactions increased significantly by 76.69 per cent from N18.23bn in October to N32.21bn in November.

However, the institutional composition of the domestic market increased by 29.98 per cent from N41.20bn in October to N53.55bn in November.

Over a 12-year period, domestic transactions decreased by 66.68 per cent from N3.56tn in 2007 to N1.19tn in 2018 while foreign transactions increased by 97.88 per cent from N616bn to N1.22tn over the same period.

Total foreign transactions accounted for about 51 per cent of the total transactions carried out in 2018 while domestic transactions accounted for about 49 per cent of the total transactions.

Between January and November 2019, total foreign transactions carried out amounted to N879.40bn while total domestic transactions amounted to N920.70bn.

 

Punch