The Nigerian Stock Exchange (NSE) is at the receiving end of some unpleasant moves made by foreign investors. Foreign investors are the main drivers of the NSE, dipped significantly in September, as the nation’s economic and financial challenges persisted.
We had reports in the month of September that the NSE investments were dipping. An analysis of foreign portfolio investments (FPI) at the NSE in September indicated a significant decline of 14. 5 per cent, amid moves by some quoted multinationals to delist from the 55-year-old bourse.
According to Premium Times report, monthly analysis of transactions at the NSE showed that foreign portfolio investment dipped to N69.33 billion. That’s about 35 million dollars in the period under review compared with N81.13 billion (about 41million dollars) recorded in August.
It is now apparent that domestic investors’ transactions decreased to N60.59 billion compared with N64.56 billion that was recorded in August.
FPI invested N29.26 billion or 22.52 per cent of total transactions while they repatriated about N40.07 billion or 30.84 per cent, from both dividends and capital gains. Also, insight from the market based transaction in the same period last year showed that FPI transactions decreased by 69.42 per cent whilst domestic transactions fell by 79.53 per cent.
At the present moment, NSE indications reveal that N1.56 trillion was so far invested in nine months in the nation’s bourse.
For this year, FPI committed N846.92 billion in the Nigerian capital market between January and September compared with N713.51 billion invested by domestic retail investors.