The Nigerian Exchange Limited (NGX) reported that foreign transactions totaling N540.48 billion were recorded between January and June 2024. This represents a significant increase from the N145.08 billion reported during the first half (H1) of 2023.
In its 'Domestic & Foreign Portfolio Investment' report released on Wednesday, NGX highlighted that foreign investors liquidated more portfolio investments in the capital market than they purchased over the six months under review.
The report detailed that out of the total foreign transactions, N311.41 billion worth of portfolio investments were liquidated in H1 2024, compared to a foreign outflow of N73.06 billion in the same period in 2023. Foreign investment inflows amounted to N229.07 billion in H1 2024, up from N72.02 billion in the corresponding period last year.
NGX also noted that domestic investors accounted for N2.06 trillion in total transactions during H1 2024, bringing the combined value of domestic and foreign transactions to N2.60 trillion by the end of June.
The report further revealed that domestic investors represented 79.25 percent of the total transactions in H1 2024, down from 90 percent in the same period last year. Conversely, foreign transactions comprised 20.75 percent of the total in H1 2024, up from 10 percent in H1 2023.
Monthly Transaction Drop
The NGX reported a slight decrease in total transactions from N355.38 billion (about $239.56 million) in May to N354.55 billion (about $241.06 million) in June, a marginal decline of 0.23 percent. Comparing June 2024 to June 2023, total transactions decreased by 12.83 percent from N406.75 billion.
In June 2024, domestic investor transactions surpassed those of foreign investors by approximately 54 percent.
Market Performance Over the Last Decade
The NGX provided a summary of market performance over the past 17 years, indicating that domestic transactions decreased by 10.94 percent from N3.556 trillion in 2007 to N3.167 trillion in 2023. Foreign transactions also dropped by 33.28 percent from N616 billion to N411 billion during the same period. In 2023, domestic transactions accounted for about 89 percent of the total, while foreign transactions made up about 11 percent.
Institutional vs. Retail Investors
Analyzing month-on-month data, the NGX reported that domestic institutional investors (58 percent) outperformed retail investors (42 percent) by 16 percent. Between May and June 2024, retail transactions increased by 0.43 percent from N113.53 billion to N114.02 billion. The institutional composition of the domestic market saw a significant rise of 34.68 percent, from N117.57 billion in May to N158.34 billion in June.
