Foreign Portfolio Investment Outflow Leaps In July


Foreign investments into the Nigerian Bourse leaped in July as very confident foreign investors overlooked the significant undervaluation of Nigerian equities.

According to the latest Foreign Portfolio Investment (FPI) report of the Nigerian Stock Exchange (NSE) there was significant increase in foreign portfolio investment outflow.

The report for the month of July, which was obtained on Tuesday, September 1, showed that foreign portfolio investment outlook has so far in 2015 been negative, with year-to-date deficit of N362.42 billion.

According to the NSE, foreign outflows totaled N58.83 billion in July as against inflow of N48.64 billion, indicating a significant rise on the downtrend in June when foreign portfolio outflow was N26.98 billion against inflow of N42.67 billion.

Year-to-date, total foreign inflow stood at N334.04 billion compared with outflow of N362.42 billion, representing net deficit of N28.38 billion. The report underlined concerns that foreign investors were downsizing their portfolios.

The latest report also showed dominance of the foreign investors in the Nigerian market with foreign transactions growing from 34.24 per cent in June to 62.91 per cent in July. On the contrary, Domestic transactions decreased from 65.76 per cent to 37.09 per cent in the same period.


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