Investors at the Nigerian Exchange Limited has noted that a total of N99.94bilion was pulled out by foreign investors from the Nigerian stock market in the first four months of 2021.
FirstNews revealed that the foreign portfolio investors injected N78.31billion into the market from January to April 2021.
The report also noted that the total value of transactions executed by domestic investors in April outperformed transactions executed by foreign investors by about 64 per cent.
However, total domestic transactions decreased by 29.78 per cent from N187.85billion in March to N131.91billion in April, while total foreign transactions decreased by 31.05 per cent from N40.64billion (about $99.70million) in March to N28.02billion (about $68.31million) in April.
Foreign portfolio investment outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transactions.
The NGX’s latest domestic and foreign portfolio noted further that the foreign outflow fell to N9.82billion in April from N20.28billion in March.
The organisation explained that the institutional investors outperformed retail investors by 44 per cent in April, adding that retail transactions decreased by 66.37 per cent from N108.55billion in March to N36.50billion in April.
It said: “However, the institutional composition of the domestic market increased by 20.32 per cent from N79.30billion in March 2021 to N95.41billion in April 2021.”
The NGX said over a 14-year period, domestic transactions decreased by 59.54 per cent from N3.56trillion in 2007 to N1.44trillion in 2020 whilst foreign transactions increased by 18.45 per cent from N616billion to N729billion over the same period.
It added, “Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26 per cent of the total transactions in the same period.
“The transaction data for 2021 shows that total foreign transactions stand at circa N178.25billion, whilst total domestic transactions are about N658.21billion.”