By Milcah Tanimu
The Nigerian Exchange Limited (NGX) has reported that N540.48 billion worth of foreign transactions were recorded between January and June 2024.
In a report titled ‘Domestic & Foreign Portfolio Investment’ released on Wednesday, NGX indicated an increase in foreign transactions compared to the N145.08 billion recorded in the first half of 2023.
The report revealed that foreign investors liquidated more portfolio investments than they purchased within the six months under review. Specifically, N311.41 billion worth of portfolio investments were liquidated in H1 2024, compared to a foreign outflow of N73.06 billion in the same period in 2023.
However, foreign investment inflow was N229.07 billion in H1 2024, up from N72.02 billion in H1 2023.
The total transaction value from domestic investors in H1 2024 was N2.06 trillion, bringing the total worth of domestic and foreign transactions in H1 2024 to N2.60 trillion as of June 31.
Domestic investors accounted for 79.25% of 2024 H1 transactions, down from 90% in the corresponding period last year. Foreign transactions made up 20.75% of the total transactions in H1 2024, compared to 10% in H1 2023.
NGX noted a marginal month-on-month decline in total transactions by 0.23%, from N355.38 billion (about $239.56 million) in May to N354.55 billion (about $241.06 million) in June.
The report highlighted that total transactions decreased by 12.83% in June 2024 compared to June 2023’s N406.75 billion.
Over the past 17 years, domestic transactions decreased by 10.94%, from N3.556 trillion in 2007 to N3.167 trillion in 2023. Similarly, foreign transactions decreased by 33.28%, from N616 billion to N411 billion in the same period. In 2023, domestic transactions accounted for about 89% of total transactions, while foreign transactions accounted for 11%.
The analysis also showed that domestic institutional investors (58%) outperformed retail investors (42%) by 16% between May and June 2024. Retail transactions increased by 0.43%, from N113.53 billion to N114.02 billion, while the institutional composition of the domestic market increased significantly by 34.68%, from N117.57 billion in May to N158.34 billion in June.
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