Foreign portfolio investment increases 17% in January

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Uba Group

BY BAMIDELE FAMOOFO

Total foreign portfolio investment in the Nigerian capital market increased by 16.96 percent in January to N41.31billion or $99.30million as against N35.32billion (about $81.20million) at the end of December 2021.

Meanwhile, Domestic portfolio investors outperformed their foreign counterpart by 74 percent in the same period. A further analysis of the total transactions executed between the current and prior month (December 2021) revealed that total domestic transactions increased by 129.44 percent from N122.94billion in December to N282.07billion in January 2022.

According to data provided by the Nigerian Exchange Limited in February, Institutional Investors outperformed Retail Investors by 32 percent. A comparison of domestic transactions in the current and prior month (December 2021) revealed that retail transactions Increased by 153.21 percent from N37.74billion in December 2021 to N95.56billion in January 2022. However, the institutional composition of the domestic market increased by 118.91 percent from N85.20billion in December 2021 to N186.51billion in January 2022.

Over a 15 years period, domestic transactions decreased by 58.80% from N3.556 trillion in 2007 to N1.465 trillion in 2021 whilst foreign transactions also decreased by 29.38 percent from N616 billion to N435 billion over the same period. Total domestic transactions accounted for about 77 percent of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23 percent of the total transactions in the same period.

The transaction data for 2022 shows that total domestic transactions are circa N282.07billion, whilst total foreign transactions are circa N41.31billion.

As at 31 January 2022, total transactions at the nation’s bourse increased by 104.33 percent from N158.26billion (about $363.81million) in December 2021 to N323.38billion (about $777.32million) in January 2022. The performance of the current month when compared to the performance in January 2021 (N232.46billion) revealed that total transactions increased by 39.11 percent.

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