At 34.90%, Foreign Investors’ Stake in Stock Market Hit Highest Peak Since 2021

Kayode Tokede

Out of the N346.23 billion total transactions executed in the Nigeria equities market in April, foreign investors were responsible for 34.90 per cent, thereby reducing domestic investors’ dominance that transacted   65.10 per cent.

The latest domestic & foreign portfolio participation in stock trading report by Nigerian Exchange Limited (NGX) revealed that the 34.90 per cent transactions by foreign investors in April 2024 is the highest since November 2021 (35.46 per cent).

The 34.90 per cent participation by foreign investors is coming on the backdrop of foreign exchange scarcity Nigeria’s economy currently facing.

The report stated, “As at 30 April 2024, total transactions at the nation’s bourse decreased by 35.71per cent from N538.54 billion (about $404.69 million) in March 2024 to N346.23 billion (about $260.24 million) in April 6 2024.

“The performance of the current month when compared to the performance in April 2023 (N191.21 billion) revealed that total transactions increased significantly by 81.07 per cent. In April 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 30per cent.”

According to the report, the total transactions executed between the current and prior month was N225.40 billion. However, total foreign transactions increased by 28.19 per cent from N94.26billion (about $70.83million) to N120.83 billion (about $90.83million) between March 2024 and April 2024.”

The report stated that, “Over a 16-year period, domestic transactions decreased by 10.94per cent from N3.556 trillion in 2007 to N3.167 trillion in 2023; whilst foreign transactions also decreased by 33.28per cent from N616billion to N411billion over the same period.

“Total domestic transactions accounted for about 89per cent of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11per cent of the total transactions in the same period.

“The transaction data for 2024 shows that total domestic transactions are circa N1.560 trillion, whilst total foreign transactions are circa N334.01billion.”