Foreign portfolio investors reduced their stake in Nigerian equities market as shown in the latest trading figures from major custodians and market operators on their foreign portfolio investments (FPI) as polled by the Nigerian Stock Exchange (NSE).
Details show that as at the end of September 2015, foreign portfolio investments transactions at the nation’s bourse decreased to N69.33 billion (about $0.35 billion) from N81.13 billion (about $0.41 billion) at the end of August 2015; representing a decrease of 14.54%.
In the nine months to September 2015, out of the total transactions worth N1.560trillion, total foreign inflow was just N396.36billion while total foreign outflow was N450.56billion.
Month-on-month, out of total transactions of N129.92billion in September, total foreign inflow was just N29.26billion while total foreign outflow was N40.07billion.
Meanwhile, as at August 2015, out of total transactions of N145.69billion, the total foreign inflow was N33.06billion, while total foreign outflow was N48.07billion.
Domestic investors conceded about 6.72percent of trading to foreign investors compared to the 11.38 percent they conceded in the preceding month as Domestic transactions increased from 44.31percent to 46.64 percent while FPI transactions decreased from 55.69percent to 53.36 percent over the same period. Foreign portfolio investors’ inflows accounted for 22.52percent of total transactions while the outflows accounted for 30.84percent of the total transactions in September 2015.
In comparison to the same period in 2014, total FPI transactions decreased by 69.42percent, whilst the total domestic transactions decreased by 79.53percent. FPI outflows outpaced inflows which was not consistent with the same period in 2014. Overall, there was a 75.15percent decrease in total transactions in comparison to the same period in 2014.
Iheanyi Nwachukwu
