Foreign investors reduce withdrawal from capital market to N15.9bn in five months
Foreign investors participating in the Nigerian capital market have ejected at least N15.9 billion by selling off their investments in the market from January to May this year.
The figure represents a net balance between an inflow of N91.32 billion and repatriated sum of N107.22 via the capital market channel within the period under review.
This is however a huge improvement compared to the same period of 2020 when the market recorded a net withdrawal of N130.93 billion as foreign investors invested N104.68 billion during which they equally ejected N235.61 billion.
Latest foreign portfolio investment (FPI) report obtained by Business Metrics from the Nigerian Exchange Limited indicated that expatriates invested N16.73 billion on shares in January while they ejected N30.79 billion in the same month.
In February, they staked a sum of N23.02 billion on equities but withdrew N39.05 in the same month.
However, there has been a reverse of the trend since March when respite visited the FPI balance sheet as expatriates invested N20.36 billion against N20.28 billion they repatriated.
The positive trend continued in April and May with N18.20 billion inflow against N9.82 outflow; and N13.01 inflow relative N7.28 billion outflow respectively.
The Domestic and Foreign Portfolio Investment Report is prepared on a monthly basis, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
These transactions are carried out by Domestic and Foreign investors and the Domestic investors are further categorized into Retail and Institutional investors.
The latest report indicated that as at 31 May 2021, total transactions at the nation’s bourse decreased by 39.23 per cent from N159.93billion (about $389.84 million) in April to N97.19 billion (about $236.33 million) in May 2021.
The performance of the current month when compared to the performance in May 2020 with a turnover of N119.15 billion revealed that total transactions decreased by 18.43 per cent.
In May 2021, the total value of transactions executed by Domestic Investors stood at N76.90 billion, representing 79.12 per cent of total transactions in the month, while their foreign counterparts traded shares worth N20.29 billion or 20.88 per cent of the total.
