Foreigners account for N1.25trn worth of Nigerian equities deals in 10 months

In 10 months to October 2014, foreign investors accounted for stock transactions valued at N1.25 trillion, compared with N964.74 billion worth of deals by domestic investors at the Nigerian Stock Exchange (NSE).

In the review 10 months period, domestic investors controlled 43.52 percent of equity market deals, while foreign investors accounted for 56.48 percent.

Overall, stocks valued at N2.216 trillion were traded in the period under review.

Foreign investor fund inflow into the equities market was valued at N575.26 billion, while foreign investors fund outflow was high at N676.67 billion.

The inflow includes purchase transactions on the NSE (equities only), while foreign portfolio outflow includes sales transactions or liquidation of portfolio investments through the stock market.

Total foreign transactions at the local bourse have risen from a low of N89.67 billion as of January 2014, to N153.28 billion at end of October.

Contrarily, total domestic transactions at the bourse have dropped from N92.3 billion in January 2014, to N21.82 billion in October 2014.

On monthly basis, the NSE polls trading figures from major custodians and market operators on their foreign portfolio investments.

As of October, foreign investors accounted for 87.54 percent of equities deals, while in the same month, domestic investors accounted for only 12.46 percent.

In October 2013, foreigner accounted 58.34 percent of equity market deals, while domestic investors were responsible for 41.66 percent worth of transaction at Customs Street.