Foreign investors lower stake in stock market, inflow dips 45% in July
By Kayode Ogunwale

stock buildingForeign investor transactions for the month of July, 2016 at the Nigerian Stock Exchange (NSE) closed lower as inflow declined by N19.03 billion represented 44.82 per cent.

The inflow transactions by foreign investors during the month of July according to polls trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows shows that N23.43 billion were transacted against N42.46 billion transacted in June.

Their outflow during the period also decrease from N37.30 billion recorded in June to N20.85 billion at the end of July 2016.

FPI total transactions decreased by 44.48 per cent from N79.76 billion in June 2016 to N44.28 billion in July 2016.

Foreign outflows also decreased by 44.10 per cent from N37.30 billion to N20.85 billion within the same period.

In comparison to the same period in 2015, total FPI transactions decreased by 54.99 per cent from N696.46 billion to N313.49 billion, whilst the total domestic transactions decreased by 31.83 per cent from N588.36 billion to N401.10 billion.

In the same vein, analysis for the period ended 31 July, 2016 indicates that total transactions at the nation’s bourse decreased by 42.13 per cent from N155.85 billion recorded in June 2016 to N90.19 billion in July 2016.

Also, total transactions from January to July 2016 decreased by 44.38 per cent from N1.285 trillion recorded within the same period in 2015 to N714.60 billion in 2016.

Domestic investors slightly outperformed their foreign counterparts by about 1.8 per cent.

Domestic transactions decreased by 39.66 per cent from N76.08 billion in June 2016 to N45.91 billion in July 2016.

However, institutional investors marginally outperformed their retail counterparts in the period under review as institutional composition of the domestic market decreased by 36.09 per cent from N39.04 billion in June to N24.95 billion.

The retail composition decreased by 43.41 per cent from N37.04 billion in June to N20.96 billion.