SAT OCT 26 2024-theGBJournal| Total transactions in the local bourse rose to a six-month high, increasing by 29.9% m/m to N493.01 billion in September (August:N379.52 billion), according to the Domestic and Foreign Portfolio Report of the Nigerian Exchange (NGX).
The performance was primarily driven by the higher participation from domestic investors (91.6% of gross transactions) despite the weaker participation from foreign investors (8.4% of gross transactions).
Analyzing the breakdown, domestic investors inflows surged by 40.2% m/m to N451.60 billion (August: N322.05 billion) due to increases in collections from retail and institutional investors by 59.4% m/m and 15.7% m/m, respectively.
However, inflows from foreign investors dropped for the fourth consecutive month, declining by 27.9% m/m to N41.41 billion in September (August: N57.47 billion), partly due to the exchange rate risk associated with the increased volatility of the naira.
Analysts at Cordros Research thinks that think buying activities will be constrained by elevated yields in the fixed-income market, even as they expect domestic investors to continue to contribute the most to total transaction value.
”Also, we expect the sustained volatility of the naira to constrain foreign investors participation in the equities market,” Cordros said.
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