In six months, foreign investors withdraw 116.72 billion naira from the stock market – Economic Confidential
In six months, foreign investors withdraw 116.72 billion naira from the stock market
The Nigerian Exchange Limited revealed that foreign investors in the equity market withdrew a total of $ 116.72 billion from January to June this year.
According to NGX’s domestic and foreign portfolio investment report for June 2021, foreign investors invested a total of 105.24 billion naira in the market, representing a decrease of 57.44% year-on-year from to 247.27 billion naira recorded in the corresponding period of 2020.
However, they withdrew 116.72 billion naira, a decrease of 75.78% from 481.93 billion naira in the corresponding period of 2020.
The net worth of foreign portfolio investment, i.e. foreign inflows minus outflows, stood at -11.48 billion naira, as foreign investors gained more from the exchange than ‘they had not put it on June 30.
However, the NGX revealed in the report that foreign transactions in the 14-year NGX increased by 18.45%, from 616 billion naira in 2007 to 729 billion naira in 2020.
NGX said, “As of June 30, 2021, total transactions on the national stock exchange have increased by 3.68%, from 97.19 billion naira (about 236.33 million dollars) in May 2021 to 100, 77 billion naira (approximately $ 244.88 million) as of June 2021.
“The current month’s performance compared to the performance of June 2020 (128.88 billion naira) revealed that total transactions decreased by 21.81 percent.
“In June 2021, the total value of transactions executed by domestic investors exceeded by approximately 54% those executed by foreign investors.
“Further analysis of the total transactions executed between the current month and the previous month (May 2021) revealed that the total domestic transactions increased by 0.59%, from 76.90 billion naira in May to 77.35 billion naira in June 2021. “Likewise, total foreign transactions have increased. by 15.43%, from 20.29 billion naira (about 49.33 million dollars) to 23.42 billion naira (about 56.91 million naira) between May 2021 and June 2021.
He added that institutional investors outperformed retail investors by 6%.