Forex Portfolio Investment On NSE Rises To 46.17% In Feb

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The Nigerian Stock Exchange (NSE), on Thursday released the Foreign Portfolio Investment (FPI) flows for the month of February, showing that domestic investors accounted for the lion’s share of total transactions, a situation that may not be unrelated to the difficulties foreign investors are encountering repatriating their capital.
Transaction on the NSE for the period under review dropped by N21.2bn or 22.25% from N95.32bn in January to N74.11bn, with foreign portfolio investments constituting N34.54bn or 46.61%, while the domestic investors accounted for the remaining N39.57bn or 53.39%.
A further breakdown of the figure showed that foreign inflow for the period stood at N16.1bn from N22.61; while outflow was N18.44bn, down from January’s N21.4bn.
Domestic retail investors also fell by 24.35% from N20.12bn to N15.22bn; just as domestic institutional investments on the bourse dropped from N31.19bn to N24.35bn.
Cumulative transactions for the first two months of 2017 decreased by 15.86% from N201.37bn in 2016 to N169.43bn in 2017, the NSE noted, adding that domestic investors outperformed foreign investors by 6.78% in February.
“Domestic transactions decreased by 22.88% from N51.31 billion recorded in January 2017 to N39.57 billion in February 2017 whilst foreign transactions also decreased by 21.52% from N44.01 billion to N34.54 billion within the same period.
“There was a 28.79% decrease in foreign inflows from N22.61 billion in January 2017 to N16.10 billion in February 2017. Foreign outflows also decreased by 13.83% from N21.40 billion in January 2017 to N18.44 billion in February 2017.”
The Exchange also recalled that since 2011, foreign transactions have consistently outperformed domestic transaction, with the exception of last year when domestic transactions accounted for 55% of the year’s total transactions.
Meanwhile, between 2014 and 2016, foreign transactions have declined by 66.34% from N1.529trillion to N518bn in 2016.
Also, in the past nine years, the NSE stressed, domestic transactions have dropped by a significant 85.43% from N3.556tr in 2007, to N634bn.

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