Foreign investments inflow recorded a significant increase of 91.24 per cent in February from N22.97 billion recorded in January to N43.93 billion.
According to the Nigerian Stock Exchange (NSE) report, Analysis of Domestic and Foreign Transactions for the Month’, release on Friday, there was also a significant increases of Foreign Outflows by 97.8 per cent from N27.81 billion in January, to N55.01 billion that was recorded in the month of February.
FPI outflo includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchang.
Total transactions on the bourse for the period under review surged by 54.06 per cent from N122.08 billionn to N188.08 billion in February 2019, but when compared to trading figures in the corresponding month of 2018, it showed a drop by 11.30 per cent.
Further analyses indicated that total value of transactions executed by foreign investors in February 2019 outperformed those by domestic investors by six per cent, as transactions executed revealed that total foreign transactions increased by 48 per cent from N66.85 billion in January 2019 to N98.94 billion.
Transaction value in the domestic market, institutional investors’ outperformed retail investors by eight per cent, even as the total retail transactions grew by 38.26 per cent from N29.66 billion in January.
In the same measure, in what the NSE says is indicative of a higher participation by institutional investors’ over their retail counterparts in February 2019, institutional composition of the domestic market also increased significantly by 88.15 per cent from N25.58 billion in January 2019 to N48.13 billion in February 2019.
The report also showed that between 2011 and 2015, foreign transactions consistently outperformed domestic transactions, while domestic transactions marginally outperformed foreign transactions in 2016 and 2017,, while it remained almost at par in 2018.
Foreign transactions which stood at N1.539 trilion in 2014 declined to N1.219 trillion in 2018, while domestic transactions decreased by 66.68 per cent from N3.556 trillion in 2007 to N1.185 trillion in 2018.
Total foreign transactions accounted for about 51 per cent of the total transactions carried out in 2018, whilst domestic transactions accounted for about 49 per cent of the total transactions in the same period, the report added.
It will be recalled that the period under review coincided with Nigeria’s general elections, the first of which was the Presidential and National Assembly polls, held on February 23, while governorship and State Assembly elections held on March 9, 2019.
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