MON. 03 APRIL 2023-theGBJournal | According to the Domestic and Foreign Portfolio Report of the Nigerian Exchange Group (NGX), total transactions in the local bourse declined by 3.2% m/m to N188.91 billion in February (January: N195.10 billion).
Overall, domestic transactions (89.6% of total transactions) settled at N169.29 billion (January: NGN170.20 billion) while foreign activities (10.4% of gross transactions) declined by 21.2% m/m to NGN19.62 billion.
Notably, while foreign investors remain net sellers of Nigerian equities, inflows declined sharply by 62.2% m/m to NGN3.68 billion – the lowest level since at least 2013 amid lingering FX liquidity constraints, election uncertainties, and (3) high global interest rates.
We expect domestic investors to continue to dominate the domestic equities market over the short-to-medium term, even as higher FI yields may constrain buying activities.
Also, FPIs who have exhibited a lacklustre interest in domestic equities are likely to remain on the sidelines due to elevated global uncertainties, sustained FX liquidity challenges, and tightening global financing conditions.
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