Foreign investors withdrew N433bn from stock market in 11 months –NSE

Foreign investors withdrew N433.15 billion worth of investment from the Nigerian equity market between January and November, compared to the N481.96 billion reported in the corresponding period of 2019, according to the Nigerian Stock Exchange (NSE)’s Domestic and Foreign Portfolio Investment Report for November issued on Wednesday.

The NSE noted that foreign inflows into the stock market declined N226.13 billion year to date from N397.44 billion recorded last year.

Total transactions on the NSE rose from N244.90 billion in October to N317.81 billion in November, showing about 30 per cent improvement in liquidity in the month under review.

Local investors accounted for the biggest chunk of the transactions executed during the month at 58 per cent, while their foreign counterparts contributed the rest.

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Aggregate domestic transactions jumped by 53.51 per cent from N163.18 billion in October to N250.50 billion in November, according to the NSE report.

“Total foreign transactions, however, decreased by 17.63 per cent from N81.72 billion (about $211.75 million) in October to N67.31 billion (about $172.38 million) in November,” it added.

Institutional investors outperformed their retail counterparts by 16 per cent. Retail transactions grew by 52.10 per cent from N69.94 billion in October to N106.38 billion in November.

“The institutional composition of the domestic market increased by 54.57 per cent from N93.24 billion in October 2020 to N144.12 billion in November 2020.”

Foreign transactions executed between January and November came to N659.28 billion in contrast to total domestic transactions of N1.240 trillion.

“Over a thirteen (13) year period, domestic transactions decreased by 72.30% from N3.556 trillion in 2007 to N985 billion in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943 billion over the same period,” the NSE report stated.

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