The total amount of transactions on Nigerian Exchange Limited (NGX), rose to N322.92 billion in the month of May, against N191.21 billion in April, representing a 68.88% increase, according to the Domestic and Foreign Portfolio Investment Report.
The report said the prolonged foreign exchange scarcity, inflation among others, had taken a toll on the Nigerian economy and the capital market, which is the economy’s barometer saw mixed sentiments in transactions in the month under review.
However, the securities market hit the biggest single day gain in two years, rising by 5.23% on May 29, as investors reacted positively to President Bola Tinubu’s ‘no more fuel subsidy and immediate unification of exchange rates’ comments.
Tinubu also stated that his administration would be targeting a higher Gross Domestic Product (GDP) growth, create jobs, work towards a unified exchange rate and ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home.
This resulted into a huge bounce as the total value of transactions executed by domestic investors outperformed transactions executed by foreign Investors by 76%.
…the prolonged foreign exchange scarcity, inflation among others, had taken a toll on the Nigerian economy and the capital market, which is the economy’s barometer saw mixed sentiments in transactions in the month under review.
Further analysis of the total transactions executed between April and May, revealed that total domestic transactions increased by 56.37% from N182.74 billion in April to N285.76 billion in May.
Similarly, total foreign transactions increased significantly by 338.72% from N8.47 billion (about $18.31 million) to N37.16 billion (about $79.88million) between April and May.
Over a 16-year period, domestic transactions decreased by 45.30% from N3.556 trillion in 2007 to N1.945 trillion in 2022 whilst foreign transactions also decreased by 38.47% from N616 billion to N379 billion over the same period.
Also, total domestic transactions stood at N945.02 billion, whilst total foreign transactions closed the month under review at N99.34 billion.
The report also revealed that institutional investors outperformed retail Investors by 38%, while there was a 19.29% hike in domestic transactions from April to May, which increased from N74.19 billion to N88.50 billion, respectively.
Similarly, the institutional composition of the domestic market increased significantly by 81.72% from N108.55 billion in April 2023 to N197.26 billion in May.
