Total transactions by domestic and foreign portfolio investors in the Nigerian stock market amounted to a value of N2.604 trillion in the first half of 2024.
This was contained in the Domestic and Foreign Portfolio Investment (FPI) June 2024 report. The Domestic and Foreign Portfolio Investment Report is prepared on a monthly basis by NGX Regulation Limited, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. These transactions are carried out by Domestic and Foreign investors.
Total transactions at the nation’s bourse from January to June 2024 stood at N2.604 trillion as against N1.451 trillion in the corresponding period of 2023. Foreign transactions stood at N540.48 billion, accounting for about 20.75 per cent of the total transactions carried out, while domestic transactions constituted N2.064 trillion, outperforming the foreign investment during the same period.
Analysis of domestic transactions showed that domestic retail transactions pulled N999.21 billion investment, while institutional investors’ investment amounted to N1.064 trillion in H1, 2024.
Meanwhile, the NGX market capitalisation gained N15.684 trillion from N40.918 trillion at the beginning of the year to close at N56.602 trillion at the end of June 28, 2024. Similarly, the Nigerian Exchange (NGX) Limited All-Share Index (ASI) rose by 33.81 per cent from 74,773.77 points on December 29, 2023 to 100,057.49 points on June 28, 2024.
The domestic investors have continued to hold ground on the floor of the Nigerian Exchange (NGX) Limited despite rising inflation and currency volatility in the foreign exchange market as they were major drivers of the Domestic & Foreign Portfolio Investment.
Analysts observed that the high local investors participation in the market is good for the local bourse, saying that this has restored credibility and stability to the market, which was hitherto marred by volatility occasioned by the activities of foreign investors.
They indicated that stability in the foreign exchange market would result in improved FPI inflow.
Speaking, on market performance in H1, the vice president, Highcap Securities Limited, David Adnori stated that investors are trading based on sentiment.
Adnori, however, was optimistic that the stock may maintain its positive momentum in H2, 2024, on the backdrop of Banking sector recapitalisation and expected H1, 2024 corporate earnings by most especially the banks listed on the Exchange.