Report Shows Foreign Transactions on NGX Rise to N145.1bn in Six Months

Total foreign transactions on the Nigerian Exchange Limited (NGX) floor increased to N145.08 billion in the first six months of 2023.

According to the latest information released on domestic and foreign portfolio investment reports in Nigeria's stock exchange for June 2023, total domestic transactions on the Exchange stood at N1.306 trillion, while total foreign transactions stayed at N145.08 billion after the review period.

It will be remembered that total foreign transactions in the first four months of 2023 stood at N62.18 billion as a result of skyrocketing inflation, extended FX scarcity, and uncertainty surrounding the 2023 elections.

NGX Regulation Limited prepares a report every month, revealing trade statistics from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.

Total transactions at the nation's exchange grew by 25.96% from N322.92 billion (about $693.99 million) in May 2023 to N406.75 billion (about $537.87 million) in June 2023, according to the report. When the current month's performance was contrasted with its performance in June 2022 (N156.52 billion), total transactions grew by 159.87%.

Also, the total value of domestic investor transactions surpassed that of overseas investor transactions by 78%. Domestic inflows and outflows were N180.91 billion and N180.11 billion, respectively, while international inflows and outflows were N22.72 billion and N23.02 billion, respectively.

A more in-depth examination of all transactions completed between the present month and the previous month (May 2023) indicated that total domestic transactions climbed by 26.34 percent from N285.76 billion in May to N361.01 billion in June 2023. Similarly, total foreign transactions climbed by 23.09 percent between May 2023 and June 2023, rising from N37.16 billion (about $79.88 million) to N45.74 billion (about $60.49 million).

According to the report, institutional investors outperformed retail investors by 32%, while a comparison of domestic transactions in the current and previous month (May 2023) revealed that retail transactions increased by 40.70% from N88.50 billion in May to N124.52 billion in June 2023. Similarly, the domestic market's institutional composition climbed marginally by 19.89%, from N197.26 billion in May 2023 to N236.49 billion in June 2023.

Domestic transactions declined by 45.30% during 16 years, from N3.556 trillion in 2007 to N1.945 trillion in 2022, while international transactions decreased by 38.47%, from N616 billion to N379 billion. Domestic transactions accounted for around 84% of total transactions in 2022, while overseas transactions accounted for approximately 16% of total transactions at the same time.