The Nigerian Exchange Limited (NGX) has reported a remarkable surge in foreign transactions, reaching a total of N145.1 billion in the first six months of the year.
This surge comes amid significant changes in government policies and the recent inauguration of a new administration.
According to the domestic and foreign portfolio investment report for June 2023, NGX Regulation Limited, which prepares the report on a monthly basis, disclosed that the total foreign transactions for the first four months of the year were N62.18 billion.
This noteworthy increase in foreign investments can be attributed to factors such as uncertainties leading up to the 2023 elections, prolonged foreign exchange scarcity, and soaring inflation.
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Comparing the data for the current period with the preceding month, the report highlighted a substantial 25.96% growth in total transactions at the nation’s bourse.
In May 2023, the total transactions amounted to N322.92 billion (approximately $693.99 million), while in June 2023, they escalated to N406.75 billion (approximately $537.87 million).
When compared to the corresponding period in June 2022, the total transactions witnessed an astounding 159.87% increase.
Further insights from the report revealed a notable outperformance of domestic transactions over foreign transactions, standing at 78%.
The total domestic transactions on the Nigerian Exchange reached an impressive N1.306 trillion, with foreign transactions accounting for N145.1 billion.
A closer examination of the data between May 2023 and June 2023 also indicated encouraging growth in both domestic and foreign transactions.
Total domestic transactions saw a notable rise of 26.34%, climbing from N285.76 billion in May to N361.01 billion in June 2023. Similarly, foreign transactions increased significantly by 23.09%, surging from N37.16 billion (approximately $79.88 million) to N45.74 billion (approximately $60.49 million).
The report also showcased the performance of institutional investors, who outperformed retail investors by an impressive 32%.
Further comparisons between the current and prior month (May 2023) indicated a substantial increase in retail transactions by 40.70%, from N88.50 billion in May to N124.52 billion in June 2023.
The institutional composition of the domestic market also experienced a marginal increase of 19.89%, reaching N236.49 billion in June 2023, up from N197.26 billion in May 2023.
Analyzing the data over a 16-year period, the report unveiled a 45.30% decrease in domestic transactions, declining from N3.556 trillion in 2007 to N1.945 trillion in 2022.
Similarly, foreign transactions also witnessed a decline of 38.47%, from N616 billion to N379 billion over the same period. In 2022, domestic transactions accounted for approximately 84% of the total transactions, with foreign transactions comprising the remaining 16%.
