By Emeka Anaeto, Economy Editor
FOREIGN Portfolio Investment, FPIs, into the Nigeria Stock Exchange, NSE, recorded a decline to N43.37 billion in January 2016, against N51.35 billion in the previous month and N99.11 billion in the corresponding month of 2015.
Though the decline was attributed to the major foreign exchange crisis the economy was facing, the data from the NSE also indicated that foreign investors’ dominated transactions during the period, accounting for 51.57 per cent of the total transaction value.
Total transactions at the nation’s bourse in January decreased by 23.93 per cent to N84.1 billion from N110.56 billion recorded in December 2015. In comparison to the same period in 2015, total transactions decreased by 55.67 per cent from the N189.72 recorded in January 2015. Domestic investors conceded about 3.14 per cent of trading to foreign investors as domestic transactions decreased from 53.55 per cent in December 2015 to 48.43 per cent in January 2016 while FPI transactions increased from 46.45 per cent to 51.57 per cent over the same period.
Monthly foreign outflows outpaced inflows which was consistent with the same period in 2015. However, there was a 23.17 per cent decrease in foreign outflows from N34.31 billion in December 2015 to N26.36 billion in 2016. Also, foreign inflows decreased by 0.18 per cent from N17.04 billion in December 2015 to N17.01 billion in January 2016.
Institutional investors dominated the domestic investments with transactions worth N21.85 billion, representing about 54 per cent of the total domestic transactions while retail investors were responsible for N18.88 billion or 46 per cent. In the corresponding month of 2015 the retail investors with N60.08 billion worth of investments hugely outplayed the institutional investors which were responsible for N30.53 billion.
Investments in the Nigerian stock market dropped by 29 per cent or N770 billion in the 12 months of 2015 according to data from the NSE. Total investment in the country was N1.9 trillion last year compared to N2.6 trillion in 2014. Data from NSE also reveals transactions involving FPI declined by 33 per cent or N513 billion for the year while domestic component dropped by 22.5 per cent or N256 billion when compared to 2014.