The Nigerian Exchange Limited (NGX) has reported that total domestic and foreign portfolio transactions on the Nigerian Exchange Limited (NGX) dropped by over N192.3 billion in April this year, from N538.54 billion in the preceding month to N346.23 billion in the month under review, representing 35.71% decline.
These figures were contained in latest Domestic and Foreign Portfolio Investment Report of NGX.
The report reflected that as of April 30, 2024, the performance of the month when compared to the N191.21 billion investments in the capital market in April 2023 showed that total transactions significantly increased by 81.07%.
An analysis of the transactions data showed that in April 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 30%.
The report showed that total transactions in April when compared to the preceding month’s value indicated that total domestic transactions decreased by 49.27% from N444.28 billion to N225.40 billion.
However, the data showed that total foreign transactions increased by 28.19 per cent from N94.26 billion (about $70.83 million) to N120.83 billion (about $90.83 million) between March 2024 and April 2024
Similarly, Institutional Investors outperformed Retail Investors by 10% just as a comparison of domestic transactions month-on-month retail transactions decreased by 54.89% from N223.37 billion in March to N100.77 billion in April this year.
Commenting on the investment trend in the month under review, analysts at Cordros Securities Limited projected: “We believe the prospect of FPIs returning to the market is a key factor to monitor in 2024. Foreign investors’ interest in the Nigerian equities market has remained weak due to difficulty in accessing and repatriating funds.
“We expect domestic investors to continue to dominate the domestic equities market over the short-to-medium term, even as higher fixed income (FI) yields may constrain buying activities.
“At the same time, we expect to see improvement in foreign participation over the medium term, even as foreign investors are likely to adopt a wait-and-see approach in the near term. Our expectation is hinged on the policy pronouncements and reforms by the current administration, undoing the policy mistakes of the past eight years”, the investment experts added.
