November Sees a 113.94% Spike in Foreign Transactions on the Nigerian Exchange Limited

The Nigerian Exchange Limited (NGX) has witnessed a 113.94% surge in foreign transactions during November.

The latest Domestic and Foreign Portfolio Investment Report for November, published by the NGX, reveals a remarkable rebound in foreign participation.

Throughout 2023, the market had grappled with a consistent drop in foreign involvement, a trend exacerbated by the global disruptions caused by the Covid-19 pandemic in 2020.

However, the tide appears to be turning, with November showcasing a noteworthy recovery.

As of November, the total value of foreign transactions has seen a substantial improvement, reaching N71.37 billion, compared to N33.36 billion in the preceding month.

This positive momentum is indicative of renewed confidence and interest from foreign investors in the Nigerian capital market.

A detailed breakdown of the report indicates that total transactions, both domestic and foreign, experienced a 34.08% increase from N220.94 billion in October to N300.67 billion in November 2023.

This surge in activity demonstrates a resounding vote of confidence in the Nigerian market, reflecting the positive strides it has made in the face of challenges.

Foreign transactions, encompassing both inflows and outflows, have exhibited a similar pattern. In November 2023, foreign inflows amounted to N157.32 billion, surpassing outflows which stood at N205.43 billion.

Notably, November recorded the highest level of inflow at N34.77 billion, underscoring the growing attractiveness of the Nigerian market to foreign investors.

The positive market trend in November extends beyond foreign transactions, with total transactions witnessing a significant year-on-year increase of 188.33%.

This surge further cements the market’s recovery, signaling a robust comeback after facing headwinds in previous periods.

Despite the challenges faced in 2022, both domestic and foreign transactions have shown resilience. Over the past 16 years, domestic transactions have decreased by 45.30%, from N3.556 trillion in 2007 to N1.945 trillion in 2022.

Similarly, foreign transactions have seen a 38.47% decrease, declining from N616 billion to N379 billion over the same period.

In summary, the NGX’s November report provides a promising outlook for the Nigerian capital market, highlighting a substantial recovery in foreign transactions and overall market activities.

The surge in foreign participation bodes well for the market’s growth and stability, setting the stage for continued positive momentum in the coming months.