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Portfolio investment in Nigeria falls to 8-month low in August



Portfolio investment in Nigeria, which aggregates the value of assets like bonds, stocks and cash equivalents held by domestic and international investors, plunged to a new low in August at N94.5 billion, its lowest level so far this year, the Nigerian Stock Exchange said on Thursday.

The value was N103.21 billion in July, meaning that portfolio investment in the country contracted by 8.49% or N8.71 billion within a month, the Exchange’s domestic and foreign portfolio investment report for August showed.

The August figure, when set beside that of the same period of 2019, which stood at N121.99 billion, was lower by 22.58%.

“In August 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by foreign Investors by circa 18%,” the report stated.

Read also: Nigerian govt’s August bonds oversubscribed by N92bn –DMO

Yet, domestic transactions slimmed month-on-month by 19.16% from N68.62 billion in July to N55.47 billion.

Foreign portfolio investments grew by 12.69% from N34.59 billion to N38.98 billion July through August.

Institutional investors invested more in the country down their retail by 4%.

Retail deals value slumped by 18.22% to N26.61 billion from the N32.54 billion posted the month before. By the same token, institutional transactions value tightened by 20.01% from N36.08 billion to N28.86 billion.

Investments in the market are likely to improve steadily in the near them in light of the central bank’s downward review of its monetary policy ratio on Tuesday by 100 basis points to 11.5%

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