SAT AUG 24 2024-theGBJournal| The total transaction value in the domestic equities market increased by 38.7% m/m to N491.61 billion in July (June: N354.55 billion), according to the July Domestic & Foreign Portfolio Investment report of the Nigerian Exchange Limited (NGX).
The increase was mainly due to a 59.4% m/m increase in domestic transactions to N434.09 billion (June: N272.36 billion) following increases of 138.5% m/m and 2.4% m/m across institutional and retail investors, respectively.
Meanwhile, foreign transactions declined by 30.2% m/m from N82.19 billion in June to N57.52 billion in July, reflecting the impact of FX liquidity constraints.
In the short to medium term, we expect domestic investors will continue to dominate market performance, even as buying activities will remain constrained by elevated yields in the fixed-income market.
Also, FPIs who have exhibited a lacklustre interest for domestic equities are likely to remain on the sidelines due to sustained FX liquidity constraints and elevated interest rates in advanced countries.
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