The Nigerian Exchange Limited (NGX) has reported a total of ₦540.48 billion in foreign transactions within the first half of 2024. This figure reflects a significant increase compared to the ₦145.08 billion recorded during the same period in 2023, according to the NGX’s recent Domestic & Foreign Portfolio Investment report.
A breakdown of the data reveals that foreign investors pulled out more funds from the Nigerian capital market than they invested during this period. Specifically, portfolio investments amounting to ₦311.41 billion were liquidated in H1 2024, a substantial rise from the ₦73.06 billion in outflows recorded in H1 2023. Meanwhile, foreign inflows stood at ₦229.07 billion, compared to ₦72.02 billion during the corresponding period last year.
Domestic transactions continued to dominate, with ₦2.06 trillion recorded in H1 2024. This brought the total value of domestic and foreign transactions to ₦2.60 trillion as of June 30, 2024.
The report highlights that domestic investors accounted for 79.25% of the transactions in H1 2024, down from 90% in H1 2023. Foreign investors contributed 20.75% of the total transactions, an increase from 10% during the same period last year.
Monthly and Historical Performance
In June 2024, total transactions slightly declined by 0.23% to ₦354.55 billion, compared to ₦355.38 billion in May 2024. However, when compared year-on-year, the June 2024 total transactions fell by 12.83% from ₦406.75 billion in June 2023. During the month, domestic investors conducted 54% more transactions than their foreign counterparts.
The NGX also provided a 17-year historical analysis, noting that between 2007 and 2023, domestic transactions decreased by 10.94% from ₦3.556 trillion to ₦3.167 trillion. Foreign transactions saw a sharper decline of 33.28%, dropping from ₦616 billion to ₦411 billion. In 2023, domestic transactions represented 89% of total market activity, while foreign transactions accounted for the remaining 11%.
Investor Breakdown
Institutional investors played a dominant role in domestic transactions, outperforming retail investors by 16%. Between May and June 2024, retail participation grew slightly by 0.43%, rising from ₦113.53 billion to ₦114.02 billion. Institutional investors recorded a more substantial increase, with transactions surging by 34.68% from ₦117.57 billion in May to ₦158.34 billion in June 2024.
