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%
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
A tale of Kwara public school where pupils learn under the tree without chalkboards
“You cannot make people learn. You can only provide the right conditions for learning to happen.” – Vince Gowmon But...
SPECIAL REPORT: Indiscriminate waste dumps, open defecation pose threat of epidemic in Kwara as govt slow to act
Forty three-year-old Bilikis Abdulrahman covered her pineapple fruit she is selling inside a white bucket container. This, she does to...
SPECIAL REPORT: Women displaced by conflict in North-Central Nigeria become farm helps to survive
Displaced women finding refuge in Abagena camp for Internally Displaced Persons (IDP) camp in Makurdi, Benue State have resorted to...
FEATURE: Kwara residents cry out for help as rainstorm devastates their homes
Phillip Moffitt, an American author, said: “the house is a home when it shelters the body and comforts the soul”,...
SPECIAL REPORT: Small businesses suffer, as govts fail to end sit-at-home in Nigeria’s South-East
It is a Thursday afternoon in December 2022 and the sun is scorching inside the popular Ogbete Market in Enugu...