Foreigners’ participation in NGX down by 30 per cent in one month

The total value of transactions executed by domestic investors outperformed transactions by foreigners by 76 per cent in July market data showed.This comes as total transactions by foreigners fell by 30 per cent between June and July.

Similarly, total transactions executed between July and the prior month revealed that total domestic transactions increased by 59.4 per cent, from N272.4 billion to N434 billion.

The latest Nigerian Exchange Limited (NGX) Domestic and Foreign Transactions Report indicated that total foreign transactions decreased by 30 per cent from N82.19 billion (about $55.88 million) to N57.52 billion about $35.69 million between June 2024 and July 2024.

Within the period, the total domestic transactions accounted for about 89 per cent of the total transactions carried out in 2023, while foreign transactions accounted for about 11 per cent.

The transaction data for 2024 also showed that total domestic transactions stood at N2.5 trillion, while total foreign transactions were N598 billion. On a monthly basis, the report indicated that as of July 31, 2024, total transactions at the country’s bourse increased significantly by 38.7 per cent from N354.6 billion in June to N491.6 billion in July.

According to the exchange, the performance of the current month when compared to the performance in July 2023 (N702.98 billion) revealed that total transactions decreased by 30.07 per cent.

Further breakdown of the figure revealed that retail investors outperformed institutional investors by 26 per cent. A comparison of domestic transactions in July and prior month (June 2024) revealed that retail transactions increased significantly by 138.5 per cent from N114 billion in June to N271.9 billion in July.

Also, the institutional composition of the domestic market increased by 2.4 per cent – from N158.3 billion in June to N162.1 billion in July.
Over 17 years, domestic transactions decreased by 10.9 per cent from N3.6 trillion in 2007 to N3.1 trillion in 2023, while foreign transactions also decreased by 33.3 per cent from N616 billion to N411 billion over the same period.

Meanwhile, the Nigerian equities market recovered from its bearish run yesterday, as investors’ wealth appreciated by N66 billion, occasioned by price appreciation in Seplat Energy Plc and 18 others.

The all-share index (ASI) gained 116.13 points, representing a gain of 0.12 per cent to close at 95,895.92 points. Also, market capitalisation rose by N66 billion to close at N54.448 trillion.