Tuesday, June 06, 2017

Nigeria’s Portfolio Investment Deal Crash by 83%
By Ag. Editor - June 6, 2017
Nigeria National Accord

FROM BAYO AZEEZ, LAGOS : The value of monthly foreign portfolio investment (FPI) transactions in Nigeria has fallen by 83 per cent in April 2017.

According to the monthly poll of trading figures from major custodians and market operators on their conducted by Nigerian Stock Exchange (NSE), the decline was occasioned by a sharp fall in total transaction value on the bourse.

Foreign transactions decreased by 83.06 per cent from N132.51 billion in March to N22.45 billion in April, 2017, an indication of unmotivated participation by foreign investors in the capital market.

Although, of the month’s total FPI deals,  foreign inflows outpaced outflows even as the inflows decreased by 38.49 per cent from N23.64 billion in March to N14.54 billion in April.

Foreign outflows also followed suits, declining by 92.73 per cent from N108.87 billion in March to N7.91 billion in the month under review.

When however compared with the same period in 2016, total FPI transactions from January to April 2017 has increased by 56.85 per cent from N148.87 billion to stand at N233.51billion this year.

Meanwhile, total transactions at the nation’s bourse decreased significantly by 80.74 per cent from N285.05 billion recorded in March 2017 to N54.90 billion in April.

Domestic investors outperformed there foreign counterparts by 18.22 per cent.

Total domestic transactions of  N32.45 billion in April, which represents 59.11 per cent of total transaction value in the month, is by 78.73 per cent lower than  N152.54 billion recorded in March this year.

Just as the FPI, the worth of total domestic transactions so far recorded  this year has grown by 27.85 per cent from N215.77 billion to N275.87 billion in 2016 and 2017 respectively.

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