For­eign in­vestors dom­i­nate stock mar­ket

Daily Trust - - NEWS - Trad­ing at Nigeria Stock Ex­change in La­gos From Kay­ode Ogun­wale, La­gos

For­eign in­vestors have re­gained their leading po­si­tion in the Nigeria cap­i­tal mar­ket by con­trol­ling 68.59 per cent trans­ac­tions in Fe­bru­ary.

Do­mes­tic in­vestors had, in Jan­uary, dom­i­nated trans­ac­tions on the Nige­rian bourse with 50.72 per cent of the en­tire trans­ac­tions.

On a monthly ba­sis, the NSE polls trad­ing fig­ures from ma­jor cus­to­di­ans and mar­ket oper­a­tors on their For­eign Port­fo­lio In­vest­ments (FPI) in­di­cate that for­eign trans­ac­tion stood at 68.59 per cent, com­pared with 31.41per cent of do­mes­tic.

The sig­nif­i­cant in­crease in FPI out­flows in Fe­bru­ary com­pared to Jan­uary and the same pe­riod last year showed that the out­flows in Fe­bru­ary was about 107 per cent higher, com­pared to Jan­uary 2014 and about 183 per cent com­pared to Fe­bru­ary 2013.

The sta­tis­tics from the ex­change showed that FPI trans­ac­tions which ac­counted for 49.28 per cent at the be­gin­ning of the year, in­creased sig­nif­i­cantly to 68.59 per cent at the end of Fe­bru­ary 2014.

In con­trast, do­mes­tic trans­ac­tions de­creased sig­nif­i­cantly from 50.72 per cent to 31.41 per cent over the same pe­riod, rep­re­sent­ing an over­all in­crease of 9.19 per cent in to­tal trans­ac­tions, bro­ken down into a 51.98 per cent in­crease in FPI trans­ac­tions and a 32.37 per cent de­crease in do­mes­tic trans­ac­tions.

In com­par­i­son to the same pe­riod in 2013, there was a sig­nif­i­cant in­crease in to­tal FPI by 45.90 per cent, whilst the to­tal do­mes­tic trans­ac­tions re­duced by 46.02 per cent.

How­ever, the FPI out­flows out­paced in­flows which were the re­verse when com­pared to the same pe­riod in 2013.

Over­all, there was a 3.71 per cent in­crease in to­tal trans­ac­tions in com­par­i­son to the same pe­riod in 2013.

Ac­cord­ing the NSE, the FPI out­flow in­cluded sales trans­ac­tions or liq­ui­da­tion of port­fo­lio in­vest­ments through the stock mar­ket, whilst the FPI in­flow in­cluded pur­chase trans­ac­tions on the NSE eq­ui­ties only.

The Jan­uary 2014 and Fe­bru­ary 2013 trans­ac­tions are in­cluded for com­par­i­son to the Fe­bru­ary 2014 trans­ac­tions. To­tal FPI trans­ac­tions of N616 bil­lion ac­counted for 14.8 per cent of to­tal trans­ac­tions in 2007, rep­re­sent­ing 50.8 per cent of the to­tal in 2013 and an in­crease of 36 per cent over 6 years pe­riod.

Do­mes­tic trans­ac­tions, on the other hand, started at N3,556 bil­lion, rep­re­sent­ing 85.2 per cent in 2007 but re­duced sig­nif­i­cantly to N1.009 bil­lion, rep­re­sent­ing 49.2 per cent of to­tal trans­ac­tions in 2013 with a sharp de­cline of 36 per cent in 6 years pe­riod.

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