In the first seven months of 2022, international investors registered N273.16 billion in transactions on the Nigerian Exchange Limited (NGX) floor, while local investors completed N1.49 trillion in total.
In the first seven months of 2021, domestic transactions totaled N886.70 billion, while foreign transactions totaled N237.49 billion, according to the Domestic and Foreign Portfolio Investment (FPI) July 2022 report, which included these transactions along with trading data from market operators.
This indicated that while overseas transactions increased by 15%, total local transactions on the NGX increased by 67.9%. However, according to the July report, the total number of transactions at the country’s stock exchange dropped from N156.52 billion (about $371.53 million) in June 2022 to N101.18 billion (around $236.86 million) in July 2022, a 35.36% fall.
However, foreign outflows totaled N16 billion, while foreign inflows totaled N13.68 billion. Analysts say that the economy’s present FX shortage is to blame for this fall.
Inflows from exports, capital imports, loans, diaspora remittances, investment income, and other independent sources have decreased since the COVID-19 pandemic.
Nonetheless, growing inflation and currency volatility in the foreign exchange market, which continue to be major drivers of both domestic and international portfolio investment, have not caused domestic investors to lose ground on the NGX floor.
The number of domestic transactions fell by 58.80% from N3.556 trillion in 2007 to N1.465 trillion in 2021, while the number of foreign transactions fell by 29.38% from N616 billion to N435 billion during the same time period.
