Firms’ investments in stock market fall by N203.67bn

The value of investment by institutional investors in the nation’s capital market has dropped by N203.67bn in one year.

According to the foreign portfolio investment report published by the Nigerian Stock Exchange on Monday, the value of institutional investment from January to September stood at N373.10bn, compared to the N576.77bn recorded in the same period in 2018.

Similarly, total transactions at the nation’s bourse declined from N2.01tn in 2018 to N1.46tn in 2019 while retail investment dropped from N439.39bn in 2018 to N402.41bn in 2019.

However, on a month-on-month basis, total transactions at the nation’s bourse increased by 15.95 per cent from N121.99bn (about $398.0m) in August 2019 to N141.45bn (about $461.50m) in September 2019.

The performance of the current month, when compared to the performance in September 2018, revealed that total transactions increased by 8.64 per cent.

In September 2019, the total value of transactions executed by foreign investors outperformed transactions executed by domestic investors by 34 per cent.

Foreign investors withdrew a total of N362.91bn between January and September, compared with the N513.49bn withdrawals recorded in the same period in 2018.

A further analysis of the total transactions executed between September and August 2019 revealed that total domestic transactions decreased by 19.91 per cent from N58.69bn in August to N47bn in September 2019.

However, total foreign transactions increased by 47.81 per cent from N63.90bn (about $208.4m) to N94.45bn (about $308.2m) between August and September 2019.

The value of domestic transactions executed by Institutional investors and retail investors were at par.

A comparison of domestic transactions in September and August revealed that retail transactions decreased by 2.34 per cent from N23.92bn in August to N23.36bn in September.

However, the institutional composition of the domestic market declined more significantly by 30.81 per cent from N34.17bn in August to N23.64bn in September.

Over a 12-year period, domestic transactions decreased by 66.68 per cent from N3.56tn in 2007 to N1.19tn in 2018 while foreign transactions increased by 97.88 per cent from N616m to N1.219tn over the same period.

Total foreign transactions accounted for about 51 per cent of the total transactions carried out in 2018 while domestic transactions accounted for about 49 per cent of the total transactions in the same period.

The actual performance in 2019 showed that total foreign transactions carried out year-till-date is about N688.91bn while total domestic transactions year-to-date is about N775.51bn.
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