The Nigerian Stock Exchange (NSE), on Wednesday released its Domestic and FPI (Foreign Portfolio Investment) Report for the month of June showing that transactions in the half-year ended June 30, 2017, rose to N935.26bn, 49.78% better than the N624.41bn in the first half of last year.
FPI transactions for the period, according to the report, grew by 59.81% from N269.22bn to N430.23bn, a situation many have linked directly to the ongoing interventions by the Central Bank of Nigeria (CBN) in the inter-bank foreign exchange, since April 21, 2017. The intervention enables foreign portfolio investment access foreign exchange to take out their capital.
In the period, domestic transactions on the Nigerian Stock Exchange (NSE) rose 42.19% N505.03bn, as against the previous N355.19bn, with domestic institutional investors (comprising mostly insurance companies and pension fund administrators) fell by 17.09% to N56.34bn, from the previous N67.95bn, while the retail composition climbed 46.92% from N42.47bn to N62.4bn. This, the report noted, indicates that retail investors are gradually regaining confidence to return to the market, overtaking institutional investors, years after the market bubble that saw many of them leaking their wounds.
Total transaction value in the month of June stood at N220.27bn, after increasing by 7.13% from N205.61bn in the preceding month, with domestic transactions of N118.74bn from N110.42bn and N101.53bn foreign transaction, a 6.66% increase over the N95.19bn recorded in May.
Foreign inflows in June fell by 10.95% to N65.93bn, from N73.15bn in May, while outflows rose to N35.6bn from N22.04bn, representing a rise of about 38.09%.
Should the trend continue to year-end, domestic investment may account for the bigger pie of portfolio investment, unlike the trend over the last full years to 2016, when domestic transaction have significantly dropped by 85.43% from N3.556tr in 2007, to last year’s N634bn.