Foreign Investors Withdrew N433.15 Billion from the Nigerian Stock Exchange

Foreign Investors Withdrew N433.15 Billion from the Nigerian Stock Exchange

Between January and November, foreign investors withdrew N433.15 billion from the Nigerian Stock Exchange, according to the latest report from the bourse on Wednesday.

The amount was lower than the N481.96 billion withdrew during the same period of 2019.

A breakdown of the report showed foreign inflows into the market dropped from N397.44 billion achieved in 2019 to N226.13 billion.

Specifically, foreign portfolio investment outflow encompasses sales transactions or liquidation of portfolio investments through the stock market while foreign portfolio investment inflow includes equities purchases on the Nigerian Stock Exchange.

Total transactions carried out on the Exchange in the month of November rose by 29.77 percent from N244.90 billion or $634.55m billion in October 2020 to N317.81 billion or $813.87 million.

The Exchange report showed the total value of transactions carried on by domestic investors in November outperformed transactions executed by foreign investors by around 58 percent.

Domestic transactions rose by 53.51 percent to N250.50 billion in November, up from N163.18 billion in October.

“Total foreign transactions, however, decreased by 17.63 percent from N81.72bn (about $211.75m) in October to N67.31bn (about $172.38m) in November,” it said.

The NSE also noted that institutional investors outperformed retail investors by 16 percent in the month of November. While retail transactions grew by 52.10 percent to N106.38 billion in November, up from N69.94 billion in October.

“The institutional composition of the domestic market increased by 54.57 percent from N93.24bn in October 2020 to N144.12bn in November 2020.”