In spite of the slow growth in the domestic economy, foreign portfolio investors (FPI) continued to find investment in the local equity market attractive, according to the latest report by the Nigerian Stock Exchange (NSE), even though investment flow from FPI has fallen short of the peak in 2014.
The NSE’s Domestic & Foreign Portfolio Investment Report released on Friday showed that total transactions on the local bourse increased by 54.06 percent in February compared with trading in January.
It said Foreign portfolio investors accounted for 51 percent of the total transactions on the floor of the bourse in February, while domestic investors executed 41 percent of the trading, indicating the dominant of FPI over local investors.
In February, a total of 188 billion naira transactions were executed on the floor of the exchange, while FPI accounted for 98.94 billion naira of the total trading in the period.
Total foreign transactions increased by 48 percent in February from 66.85 billion naira in January to 98.94 billion naira in February 2019.
The NSE report said total value of transactions executed by foreign investors outperformed those executed by domestic investors by 6 percent in February.
"There was a significant increase in foreign outflows which increased by 97.80 percent from 27.81 billion naira to 55.01 billion naira and foreign inflows which increased by 91.24 percent from 22.97 billion naira to 43.93 billion naira between January and February 2019," NSE report showed.
Between 2011 and 2015, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017 and remained almost at par in 2018.
Governor of the Central Bank of Nigeria (CBN) told a conference in Lagos on Thursday that about $5 billion was attracted through the FPI shortly after the just concluded general election an indication of sustained confidence in the economy by foreign investors.
It said Foreign portfolio investors accounted for 51 percent of the total transactions on the floor of the bourse in February, while domestic investors executed 41 percent of the trading, indicating the dominant of FPI over local investors.
In February, a total of 188 billion naira transactions were executed on the floor of the exchange, while FPI accounted for 98.94 billion naira of the total trading in the period.
Total foreign transactions increased by 48 percent in February from 66.85 billion naira in January to 98.94 billion naira in February 2019.
The NSE report said total value of transactions executed by foreign investors outperformed those executed by domestic investors by 6 percent in February.
"There was a significant increase in foreign outflows which increased by 97.80 percent from 27.81 billion naira to 55.01 billion naira and foreign inflows which increased by 91.24 percent from 22.97 billion naira to 43.93 billion naira between January and February 2019," NSE report showed.
Between 2011 and 2015, foreign transactions consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017 and remained almost at par in 2018.
Governor of the Central Bank of Nigeria (CBN) told a conference in Lagos on Thursday that about $5 billion was attracted through the FPI shortly after the just concluded general election an indication of sustained confidence in the economy by foreign investors.
Many Analysts have predicted massive capital flight from the domestic market against the backdrop of uncertainty surrounding the preparation for the election then.
The electoral body, Independent National Electoral Commission (INEC) declared President Mohammadu Buhari winner of the election while his closest rival Atiku Abubakar of the main opposition party has headed to court to challenge the result of the election.
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