NIGERIA’S POLITICAL TURMOIL: Foreign transactions fall by N66.24bn

Following the interest rate hike by the United States Federal Reserve and the rising political uncertainties in Nigeria, the total foreign transactions at the Nigerian Stock Exchange (NSE) fell by N66.24 billion in July.

The monthly Domestic and Foreign Portfolio Participation in Equity Trading for July 2018 released by NSE on Monday revealed that, there was a decrease of 64.68 percent in total foreign transactions from N102.41 billion in June 2018 to N36.17 billion in July.

Both foreign inflows and outflows at the exchange declined by 58.65 percent from N47.96 billion to N19.83 billion and 69.99 percent from N54.45billion to N16.34billion in the review month, respectively.

It said the total transactions at the nation’s bourse reduced by 22.21 percent from N187.78 billion recorded in June 2018 to N146.07 billion in July.

“The cumulative transactions from January to July increased by 54.38 percent from N1.129 trillion recorded in 2017 to N1.743 trillion in 2018,” the report read in part.

On the other hand, the total domestic transactions increased by 28.72 percent from N85.38 billion in June to N109.9 billion in July, making domestic investors outperformed foreign investors by 50.48 percent  in the month under review.

“The domestic transactions were largely driven by the 55.48 percent increase in the retail domestic participation which recorded N29.12 billion in June 2018 and N65.42 billion in July 2018,”the report added.

Read Also: Nigeria’s economy slows in Q2 2018 as fears of another recession rise

Meanwhile, the stock market yesterday closed on a negative note as the key performance indicator of the NSE, the All-Share Index (ASI) dropped by 32 basis points to close at 35,311.36 points.

Bellwether stocks such as Dangote Cement dragged the NSE Industrial index lower by 0.40 percent and the market into negative territory.

In spite of the bearish performance at the exchange, 26 stocks gained against 14 stocks that lost.

Market capitalisation decreased by N41 billion to stand at N12.89 trillion while the year-to-date loss of the ASI increased to 7.67 percent.

A total of 178.81 million stocks valued at N2.020 billion were exchanged in 2,981 deals as against a total of 527.74 million shares worth N4.53 billion traded in 3,313 deals on Friday.

 

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