The total value of domestic transactions on the Nigerian Exchange Limited (NGX) in the first half of 2024 reached N2.06trn, significantly surpassing the N540.48bn in foreign transactions during the same period.
This data was revealed in the domestic and foreign portfolio investment report of the Nigerian Exchange Limited for June 2024, as obtained by NewsNGR.
Further analysis showed that domestic transactions outperformed those executed by foreign investors by N1.52trn, or 281.88 per cent.
The disparity is attributed to low sentiment among foreign investors, driven by economic volatility. Foreign portfolio investors typically exhibit weak sentiment in unstable economies, seeking to reduce their market exposure amid perceived uncertainties.
As of 30 June 2024, total transactions at the nation’s bourse decreased marginally by 0.23 per cent from N355.38bn (about $239.56m) on May 5 2024 to N354.55bn (about $241.06m) in June 2024.
The performance of the current month when compared to the performance in June 2023 (N406.75bn) revealed that total transactions decreased by 12.83 per cent.
In June 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 54 per cent.
A further analysis of the total transactions executed between the current and prior month (May 2024) revealed that total domestic transactions increased by 17.85 per cent from N231.10bn in May 2024 to N272.36bn in June 2024.
However, total foreign transactions decreased by 33.87 per cent from N124.28bn (about $83.78m) to N82.19bn (about $55.88m) between May 2024 and June 2024.
According to the report, Institutional Investors outperformed Retail Investors by 16 per cent.
A comparison of domestic transactions in the current month and prior month (May 2024) revealed that retail transactions increased by 0.43 per cent from N113.53bn in May 2024 to N114.02bn0 in June 2024.
Similarly, the institutional composition of the domestic market increased significantly by 34.68 per cent from N117.57bn in May 2024 to N158.34bn in June 2024.
Highlights of the performance of the market over the last decade revealed that over a period of 17 years, domestic transactions decreased by 10.94 per cent from N3.56trn in 2007 to N3.17trn in 2023; while foreign transactions also decreased by 33.28 per cent from N616bn to N411bn over the same period.
Total domestic transactions accounted for about 89 per cent of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11 per cent of the total transactions in the same period.