The Nigerian Exchange Limited (NGX) has reported a significant increase in foreign transactions for the first half of 2024, with a total of ₦540.48 billion recorded between January and June.
This represents a notable rise from the ₦145.08 billion reported during the same period in 2023.
According to the NGX’s latest report titled ‘Domestic & Foreign Portfolio Investment,’ foreign transactions were marked by a substantial outflow.
The report reveals that foreign investors liquidated ₦311.41 billion worth of portfolio investments during the first half of 2024, a sharp increase from the ₦73.06 billion outflow observed in the corresponding period of 2023.
Key Highlights:
- Foreign Transactions Breakdown:
- Foreign investors liquidated N311.41 billion in portfolio investments in H1 2024, compared to N73.06 billion in H1 2023.
- Foreign investment inflow was N229.07 billion in H1 2024, significantly higher than the N72.02 billion reported in the same period last year.
- Domestic vs. Foreign Transactions:
- Domestic investors accounted for N2.06 trillion worth of transactions in H1 2024, making up 79.25% of the total transactions. This is a decrease from the 90% share reported in H1 2023.
- Foreign transactions represented 20.75% of the total, up from 10% in H1 2023.
- Monthly Transaction Trends:
- Total transactions decreased slightly by 0.23% from N355.38 billion in May to N354.55 billion in June 2024.
- When compared to June 2023, the total transactions in June 2024 decreased by 12.83%.
- Domestic transactions in June 2024 outperformed foreign transactions by approximately 54%.
- Historical Context:
- Over the past 17 years, domestic transactions have decreased by 10.94%, from N3.556 trillion in 2007 to N3.167 trillion in 2023.
- Foreign transactions decreased by 33.28% during the same period, from N616 billion to N411 billion.
- In 2023, domestic transactions accounted for about 89% of the total transactions, while foreign transactions accounted for about 11%.
Despite this, the total foreign investment inflow was ₦229.07 billion, up from ₦72.02 billion the previous year.
The NGX’s data shows that domestic investors remained dominant in the market, accounting for ₦2.06 trillion in transactions, which, combined with foreign transactions, brought the total transaction value for the period to ₦2.60 trillion.
Domestic investors represented 79.25% of the total transactions, down from 90% in the first half of 2023.
Foreign transactions comprised 20.75% of the total, up from 10% in the same period last year.
Month-on-month data indicates a slight decline in total transactions, with June 2024 seeing a marginal decrease of 0.23% from ₦355.38 billion in May to ₦354.55 billion. When compared to June 2023, this represents a 12.83% decrease.
Notably, domestic investors outperformed foreign investors by approximately 54% in June 2024.
A further breakdown of monthly performance shows that domestic institutional investors led with a significant 34.68% increase in transactions from May to June 2024, while retail investors saw a smaller increase of 0.43%.
In contrast, foreign transactions dropped by 33.87% between May and June 2024.
The NGX also provided historical context, noting a 10.94% decline in domestic transactions from ₦3.556 trillion in 2007 to ₦3.167 trillion in 2023.
Foreign transactions decreased by 33.28% over the same period, from ₦616 billion to ₦411 billion. In 2023, domestic transactions accounted for about 89% of the total market activity, while foreign transactions made up about 11%.
The NGX emphasized the importance of ongoing monitoring and analysis of market trends, with the Domestic and Foreign Portfolio Investment Report serving as a key tool for understanding investment flows and market dynamics.
