Connect with us

Investment

Foreign Investment in NSE Drops by 15%

Published

on

NSE

The participation of foreign investors in the Nigerian Stock Exchange fell by 15 per cent between January and February this year, data from the NSE showed.

The NSE had put the level of participation by the foreigners at 51.57 per cent for January 2016. But the latest data released by the Nigerian bourse showed that for February 2016, the number dropped to 36.48 per cent.

Despite the fall in foreign portfolio investment at the Exchange, total transaction (comprising domestic and foreign portfolio investments) increased to N117.27bn in February, from N84.10bn in January.

Foreign portfolio investments for the period fell to N42.78bn while foreign inflows also dropped to N10.94bn from N17.01bn.

In the same vein, foreign outflow rose in February to N31.84bn from N26.36bn for January.

The NSE also recorded growth in domestic retail equity deals. The figure rose to N36.24bn in February from N18.88bn in January.

Investments by domestic institutions also rose to N38.25bn in February from N21.85bn the previous month.

The institutional composition of  the  domestic  market increased   by 75.05 per cent, and according to the Exchange, this indicated that institutional  investors slightly  outperformed their retail counterparts in the period under review.

In 2013, there was a major rebound in the domestic   component   which   led   to   an almost equal split  in foreign against domestic transactions.

This led to a drop in 2014 when the FPI outperformed domestic transactions.

In 2015, FPI dropped compared to 2014. However, it slightly outperformed domestic transactions in the same period.

The dwindling returns in the country’s stock market caused foreign portfolio investors to pull out N410.49bn from the equities segment of the NSE between January and August last year.

Just as was the case in 2014, foreign investment outflow exceeded inflow in the first eight months of 2015.

Foreign investors had pulled out N846.53bn from the stock market in 2014 although they invested N692.39bn, a development that caused the NSE All-Share Index to close with a negative return of -16.14 per cent.

The market is dominated by foreign investors. They accounted for 57.52 per cent of total transactions in 2014.

In the first eight months of 2015, foreign investment inflow was N367.10bn, which was N43.39bn less than outflow.

Despite the reported exit of many foreign investors from the stock market and expectations that domestic investors would take advantage of low stock prices, foreign investors still dominated the market, accounting for 54.36 per cent of the N1.430tn transactions in equities as of August.

Further review of the participation statistics showed that foreign portfolio investment outflow exceeded inflow in six of the eight months under consideration.

Inflow exceeded outflow in April 2015, as investor confidence rose after the peaceful conduct of the presidential election, and in June following the change in government. Year-to-date, the NSE All-Share Index has a negative return of -12.40.

The N1.430tn transactions recorded in the equities segment of the NSE in the first eight months of 2015 was, however, 5.8 per cent or N88bn lower than the N1.518tn transactions recorded in the same period of 2014.

The Director-General of the Securities and Exchange Commission, Mr. Mounir Gwarzo, had promised that the commission would work hard to attract more investment and encourage more Nigerians to participate in the capital market.

According to him, the commission will ensure that the market remains vibrant in order to attract local and international investors.

He was quoted as saying, “We will step up to reach out to the market and improve investment. On the international side, what is most important is the enabling environment. Right now the rules are very friendly and that is why we keep changing them from time to time to suit best practices and attract investors.

Mounir also emphasised the need for investor education both for retail and institutional investors as a means to improve the level of investment from the domestic investors.

The Chartered Institute of Stockbrokers had lamented that over 60 per cent of the Nigerian stock market was controlled by foreign investors. He said the situation was a major cause for concern.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Investment

Nigeria’s Insecurity Issues Force Mexican Investors to Stall Investment Plans

The insecurity issues ravaging Nigeria have forced some Mexican investors to put a hold on their plans to invest in the country.

Published

on

investment

The insecurity issues ravaging Nigeria have forced some Mexican investors to put a hold on their plans to invest in the country.

This was disclosed by the Nigerian Ambassador to Mexico Hon. Adejare Bello.

He said that the Nigerian embassy frequently receives inquiries from investors about their plans to invest in the country and for possible collaboration.

With the abundance of natural resources in Nigeria, these investors have been looking to invest in areas such as gold mining, oil and gas, and agriculture, as well as partnering with Africa’s richest man Aliko Dangote in the area of fertilizer procurement.

Unfortunately, these investors have stepped back on their plans due to the incessant attacks and insecurity challenges bedeviling the country.

In his words, “In the last decade, one of the critical challenges facing the Nigerian economy is the lack of adequate security of life and properties which has made the country lose so much in terms of foreign direct investment.

“The present situation in the country is very clear evidence of the impact of insecurity on the nation’s development in general and on the economy in particular.

“Lives are lost in the bombings, properties destroyed and businesses collapse as some businessmen who are not indigenes of the affected states leave and migrate to other states. Even the indigenes are taken to refugee camps leading to an increase in government expenditure”

Hon. Bello stated that the insecurity issues in the country have led to a slowdown of Foreign Direct Investment (FDI) which is worrisome, noting that it would be beneficial to the country due to its recent economic challenges.

He, therefore, called on the Federal Government to summon the political will necessary to ensure adequate internal security on a sustainable basis and create a friendly investment climate for inflows of foreign capital into the country.

Investors King understands that Nigeria’s insecurity challenges have not only slowed down investment inflow in the country, but it has also led to the exit of several multinational firms.

The country continues to miss out on so many opportunities of attracting Foreign Direct Investments (FDI) due to escalating insecurity crisis.

Continue Reading

Investment

Ogun State Government Inaugurates Ogun Invest, Facilitates Agency

Ogun State Government on Friday inaugurated the Ogun State Investment and facilitation Agency, commonly referred to as the OGUNINVEST.

Published

on

Governor Abiodun of Ogun State

Ogun State Government on Friday inaugurated the Ogun State Investment and facilitation Agency, commonly referred to as the OGUNINVEST.

The inaugural ceremony was held at the Governor’s Office in Oke Mosan, Abeokuta.

The Ogun State Governor, Dapo Abiodun who led the inauguration said the newly inaugurated OGUNINVEST would promote the state and give access to both local and international investors.

The Governor, during the ceremony, said his administration had so far attracted nothing less than 36 investment portfolios that are worth over $1 billion.

He said that the investments altogether were able to generate over 40,000 jobs for the citizens of the state, and the facilitation agency would strengthen governance and diversification in Ogun state.

Abiodun disclosed that the primary focus of the agency is positioned on making the state an investment of choice, generating wealth for all in Ogun State citizens, and helping the private sectors grow.

He said, ” The facilitation agency is committed to attracting, facilitating, and nurturing investments into Ogun State.

“Our administration through Oguninvest Will continue to play the role of the enabler and facilitator to help the private sector grow, create jobs, and generate wealth for all in Ogun State.

“We have continued to reap a bountiful harvest from our commitment as existing investments are thriving and new investments are being attracted. As of today, we’ve been able to attract 36 new investments into Ogun State worth over a billion United States dollars and generated an estimation of over 40,000 jobs since the inception of OGUNINVEST.”

He disclosed that his administration has always been committed to the growth of the industrial sector in the state and that his administration would soon commence the construction of the Special Agro Processing Zone by November 2022.

The Governor included that a lot of tax reforms had been introduced under his administration, ensuring that multiple taxes were removed and his administration has also successfully made its payment process digital.

Continue Reading

Investment

Nigerian Investors Petitions Kenya Courts to Release Funds Held in Several Bank Accounts

2,000 Nigerian investors demanding the release of Ksh 1.44 billion ($1.8million) held by Safaricom and four other banks in Kenya.

Published

on

Investment - Investors King

A petition has been made by more than 2,000 Nigerian investors demanding the release of Ksh 1.44 billion ($1.8million) held by Safaricom and four other banks in Kenya.

These investors claim that they were duped billions of shillings by a sports betting platform (86FB) that used Nigerian and African Fintech company Flutterwave to process payments.

Citing Kenya’s anti-money laundering laws, these investors are demanding that the sum of $12 million is split from the Ksh 6.6 B ($55 M) that was frozen in July in 62 bank accounts at Guaranty Trust Bank (GTB), Equity Bank, Ecobank, and UBA Bank, as well as in 19 Safaricom paybill numbers.

The Assets Recovery Agency (ARA) was granted permission to freeze Ksh 5.17 B (USD 49 M) in 29 GTB accounts, with the remaining funds held in accounts at Equity and Ecobank in Kenyan Shillings, US Dollars, Euros, and British Pounds.

The large sums are alleged to be the proceeds of theft, credit card fraud, and money laundering that were wired under the guise of payments for goods and services.

One of the investors who identified himself as Morris Ebitimi Joseph claimed that he and other investors had filed a new lawsuit in Nigeria to seek the return of their funds.

They argued that a portion of the money belonged to them and have opposed the attempt to forfeit it to the Kenyan government which they claimed were fraudulent proceeds.

In his words, “I believe that the issuance of an order compelling Guaranty Trust Bank, Equity Bank, and Ecobank to deposit the sums excluded in the bank account of our advocates, justice shall be served to the 2,468 interested parties who were swindled of their hard-earned money through the scheme”.

Morris claimed that the investors put money into the investment scheme on the promise of better returns from the betting business, but however, never materialized.

Before the payments stopped, according to them, everything was fine for about six months. He also shared that after conducting research, he came to the conclusion that the operation was questionable, and now wants to join the case and help the court resolve the issue.

The Nigerian contingent is requesting the Central Bank of Kenya (CBK), which declared in July that Flutterwave is not licensed in Kenya, to ask that the court issue an order directing Access Bank, Safaricom, and United Bank of Africa to deposit the excluded amount in the account of his attorneys.

“The claim made by the applicant/intended interested party represents the interest of 2,468 persons, thus occasioning monumental public interest.

Failure to expeditiously determine whether the application is in like fashion constitutes substantive and irreparable injustice,” Joseph says. He contends that there may be more people with an interest in the funds in addition to the 2,468 people who are requesting an injunction.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending