Foreign investors’ transactions on the Nigerian Exchange Limited (NGX) surged to N744.34 billion in the first ten months of 2024, representing a 156 percent Year-on-Year (YoY) increase compared to N291.38 billion recorded during the same period in 2023.
This significant rise is linked to the Central Bank of Nigeria’s (CBN) reforms in the foreign exchange market, which have enhanced foreign investor participation.
The NGX’s latest “Domestic & Foreign Portfolio Participation in Equity Trading” report for October 2024 revealed that foreign investors contributed 16.65 percent of the total transactions valued at N4.47 trillion during the review period. This marks a slight reduction in the dominance of domestic investors, that accounted for 83.35 percent of the total transactions.
Foreign investor activity comprised inflows and outflows of N344.30 billion and N400.04 billion, respectively, signaling increased engagement from international market participants. The report stated, “In October 2024, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 82 per cent.”
The Central Bank of Nigeria’s (CBN) recent foreign exchange reforms, aimed at improving transparency and stability, have played a key role in fostering this growth. These reforms, coupled with aggressive Monetary Policy Rate (MPR) hikes to curb inflation and stabilize the naira, align with the CBN’s broader strategy to support economic growth through enhanced monetary policies.
During the period under review, domestic investors, including retail and institutional participants, transacted N3.73 trillion worth of equities. Retail transactions almost doubled to N1.91 trillion from N935.78 billion in the corresponding period of 2023, while institutional transactions rose to N1.82 trillion from N1.71 trillion in the previous year.
The total transaction value on the NGX increased marginally by 1.97 per cent from N493.01 billion in September 2024 to N502.73 billion in October 2024. Year-on-year, the October figure represented a significant 127.54 percent increase compared to N220.94 billion recorded in October 2023.
In October 2024, domestic investors executed 82 per cent of the transactions, with their activity increasing by 0.81 percent from N451.60 billion in September to N455.27 billion. Foreign transactions rose by 14.61 per cent in the same period, from N41.41 billion in September to N47.46 billion in October.
The data reflects the positive impact of economic reforms and sustained interest from both domestic and foreign investors, positioning the Nigerian capital market for further growth.
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