STOCKS; FOREIGN INVESTORS MOVE OUT N116.5BILLION IN NOVEMBER

Foreign investors are moving away their investment from the Nigeria stock market due to fears of aftermath of 2015 general elections.

The Nigerian Stock Exchange (NSE) polls trading figures from major custodians and market operators on their Foreign Portfolio Investments (FPI) showed that total foreign outflow stood at N116.50 billion at the end of November transaction.
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the NSE equities only.
Data from NSE indicated that total foreign transaction in November was N162.49 billion, while total foreign inflow was N45.99 billion.
However, the Nigerian bourse said total FPI transactions of N616 billion which accounted for 14.8 per cent of total transactions in 2007 consistently increased over the years to N1,042 billion, representing 50.8 per cent of the total in 2013 (An increase of 36 per cent over the 6 year period).
Domestic transactions, on the other hand, started at N3,556 billion, representing 85.2 per cent in 2007, but decreased significantly to N1,009 billion, representing 49.2 per cent of total transactions in 2013 (A sharp decline of 36 per cent in the 6 year period).
Total transactions at the nation’s bourse increased by 10.35 per cent from N181.87 billion recorded in January to N200.80 billion in November 2014.
This represented an increase of 14.68 per cent from N175.10 billion recorded in October.
Domestic investors which conceded about 75.08 per cent of trading to foreign investors in October conceded 61.84 per cent in the period under review as Domestic transactions increased from 12.46 per cent to 19.08 per cent while FPI transactions decreased from 87.54 per cent to 80.92 per cent over the same period.
FPI outflows which accounted for 58.02 per cent of total transactions outpaced the inflows which accounted for 22.90 per cent of the total transactions in November 2014.
Meanwhile, the comparative between 2013 and 2014 indicated significant increase in FPI transactions from 46.59 per cent in November 2013 to 80.92 per cent in November 2014.
On the contrary, domestic transactions decreased from 53.41 per cent to 19.08 per cent in the same period.