Foreign Investors Resolute on Nigeria as Domestic Investors Accounts for 54.44% in May -NSE

Data optioned from the Nigerian Stock Exchange (NSE) indicates that foreign investors are unmoved by recent happenings in parts of the North and fears of 2015 elections with domestic investors more heavily involved in transactions in the capital market.
Latest data from the Nigerian Stock Exchange (NSE) shows that total transactions on the bourse for the month of May stood at N201.61 billion, with domestic investors accounting for a significant N109.75 billion, as against the previous month’s N45.64 billion.
Specifically, according to the exchange, foreign portfolio investment accounted for 45.56 per cent, while the domestic investors pooled 54.44 per cent of the transaction value for the period.
This, the exchange said, was a significant improvement over the figures for the previous month, where foreign investors were responsible for 75.25 per cent of transaction value, leaving just 24.75 per cent for local investors.
The trend in May, the bourse noted on its website on Tuesday, is an indication of the gradual return of confidence among domestic investors, most of who lost money in the 40-month drought that spanned 2007 and 2011.
In absolute terms, foreign portfolio investment inflow in May stood at N41.27 billion, while outflow was N56.59 billion, bringing total to N91.86 billion.
In the first five months of the year, total transaction value stood at N933.55 billion, with total foreign investment outflow of N353.41 billion and inflow of N587.15 billion, while domestic investment was N346.4 billion. This represents year-to-date foreign portfolio investment of 62.89 per cent at the end of May, and 37.11 per cent domestic investment.
The year opened with foreign investment flow accounting for 49.28 per cent of total transactions, and 50.72 per cent for domestic investment; rising in February to 68 per cent, while the domestic investment fell to 31.41 per cent. Foreign portfolio investment rose further in March to 78.25 per cent, squeezing the domestic investment to just 21.75 per cent within the period.
**Daily Independent** finding revealed that the trend in May, may just be seasonal, given that in the same period of last year, there was a similar occurrence.
Commenting on the mix last year May, Arunma Oteh, director-general of the Securities and Exchange Commission (SEC), noted that “the records of foreign to domestic participation as at May 2013 showed that the ratio stood at 49 per cent to 51 per cent as against a position of 61 per cent to 39 per cent in 2012 in favour of foreign investors.

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