The total domestic transactions carried out by investors on the floor of the Nigerian Exchange Limited (NGX) during the first four months of 2023 have reached N659.26 billion notwithstanding the prevailing macroeconomic difficulties.
The information on domestic and international portfolio involvement in Nigeria’s equities trading for the month of April was only recently made public. The sustained lack of foreign currency and inflation, among other factors, have had a negative impact on the Nigerian economy. The capital market, which serves as a barometer for the economy, had mixed attitudes in transactions during the reviewed month.
For example, domestic transactions fell by 45.30% from N3.556 trillion in 2007 to N1.945 trillion in 2022, and international transactions fell by 38.47% from N616 billion to N379 billion over the same time period.
In addition, local transactions made up over 84 percent of all transactions in 2022, while international transactions made up roughly 16 percent of all transactions during same time.
However, according to transaction statistics for 2023, there were N659.26 billion in total domestic transactions, compared to N62.18 billion in total international transactions.
The overall volume of transactions at the country’s stock exchange climbed by 30.77% from N146.22 billion (about $317.09 million) in March 2023 to N191.21 billion (roughly $413.25 million) in April 2023, according to the report. The total number of transactions declined by 7.13 percent in the current month compared to April 2022 (N205.88 billion), according to the performance of the current month.
On the other hand, between March and April 2023, total foreign transactions declined by 7.83%, from N9.19 billion (about $19.94 million) to N8.47 billion (around $18.31 million).
The survey also showed that the total value of domestic investor-executed deals surpassed investor-executed overseas transactions by 92%. Foreign inflows and outflows were N3.67 billion and N4.80 billion, respectively, while domestic inflows and outflows totaled N91.91 billion and N90.83 billion in the reviewed month.
Retail transactions climbed by 40.43 percent from N52.83 billion in March to N74.19 billion in April 2023, according to a comparison of domestic sales in the two months previous (March 2023) and this one.
Similarly, from N84.20 billion in March 2023 to N108.55 billion in April 2023, the institutional composition of the domestic market expanded considerably by 28.92%.