Economic crisis: Foreign investors cut commitment at Nigeria Stock Exchange

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Activities of foreign portfolio investors, the main drivers of the Nigeria Stock Exchange (NSE), dipped significantly in September, as the nation’s economic and financial challenges persisted.

An analysis of foreign portfolio investments (FPI) at the NSE in September indicated a significant decline of 14. 5 per cent, amid moves by some quoted multinationals to delist from the 55-year-old bourse.

Monthly analysis of transactions at the NSE showed that foreign portfolio investment dipped to N69.33 billion (about35 million dollars) in the period under review compared with N81.13 billion (about 41million dollars) recorded in August.

The data showed that domestic investors’ transactions decreased to N60.59 billion compared with N64.56 billion recorded in August.

A further analysis of the September trading also showed that FPI invested N29.26 billion or 22.52 per cent of total transactions while they repatriated about N40.07 billion or 30.84 per cent, from both dividends and capital gains.

An insight from the market based transaction in the same period of 2014 showed that FPI transactions decreased by 69.42 per cent whilst domestic transactions fell by 79.53 per cent.

Overall, the NSE data indicated that N1.56 trillion was so far invested in nine months in the nation’s bourse.

A further breakdown indicates also that FPI committed N846.92 billion in the Nigerian capital market between January and September compared with N713.51 billion invested by domestic retail investors.

Source: PremiumTimes