Total foreign transactions on the Nigerian Exchange Limited increased by 113.94 percent in November to N71.37 billion (approximately $75.76 million) from N33.36 billion the previous month. This was reported in the Nigerian Exchange Limited’s November Domestic and Foreign Portfolio Investment Report.
Foreign involvement in the Nigerian capital market has consistently declined, which would be exacerbated by the Covid-19 epidemic in 2020. Total domestic transactions were valued at N2.454 trillion as of September 2023, while total overseas transactions were valued at around N258.02 billion.
According to the most recent NGX data, total overseas transactions increased to N363 billion in November, while total domestic transactions increased to N2.871 trillion.
Monthly, foreign transactions dropped in October to N33.36bn from N35.24bn. It however jumped to N71.37bn in November.
‘’The total transactions executed between the current (November) and prior month (October 2023) revealed that total domestic transactions increased by 22.24 per cent from N187.58bn in October to N229.30bn in November 2023. Similarly, total foreign transactions increased by 113.94 per cent from N33.36bn (about $36.83m) to N71.37bn (about $75.76m) between October 2023 and November 2023,” the report disclosed.
A deeper examination of the international transactions revealed that outflows outnumber inflows. Foreign inflows were N157.32 billion in November 2023, while outflows were N205.43 billion. The greatest amount of inflow was N34.77 billion in November, while the lowest was N3.67 billion in April.
Looking at the overall market trend, total transactions at the nation’s exchange grew by 34.08 percent from N220.94bn (about $243.93m) in October to N300.67bn (about $319.15m) in November 2023. Total transactions grew by 188.33% year on year when compared to the November 2022 number (N104.28bn).
The total value of deals done by local investors outpaced transactions executed by international investors by almost 52% in November 2023.
Meanwhile, institutional investors outperformed retail investors by 20 per cent. A comparison of domestic transactions in the current and prior month (October 2023) revealed that retail transactions increased by 7.30 per cent from N86.46bn in October to N92.78bn in November 2023.
Also, the institutional composition of the domestic market increased by 35.01 per cent from N101.12bn in October 2023 to N136.52bn in November 2023.
An historical trend of the market revealed that over 16 years, domestic transactions decreased by 45.30 per cent from N3.556tn in 2007 to N1.945tn in 2022 whilst foreign transactions also decreased by 38.47 per cent from N616bn to N379bn over the same period.
Total domestic transactions accounted for about 84 per cent of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16 per cent of the total transactions in the same period.
