SUN 31 OCT, 2021-theGBJournal- According to the September Domestic & Foreign Portfolio Investment report of the Nigerian Exchange Limited (NGX), total transaction value at the domestic equities market increased by 32.1% m/m to NGN118.15 billion in September (August: NGN89.42 billion) – the highest since April (NGN159.93 billion).
The increase was mainly due to a 46.4% m/m increase in domestic transactions (79.4% of total transaction value), reflecting robust participation of institutional investors (+92.6% m/m vs August: NGN32.21 billion).
Meanwhile, foreign transactions declined by 4.0% m/m to NGN24.35 billion. We highlight that the total transaction value at the local bourse printed NGN1.33 trillion in 9M-21 (9M-20: NGN1.34 trillion).
We expect domestic investors’ activities to maintain current momentum as investors take positions in dividend-paying stocks ahead of 2021FY dividend declarations.
Similarly, we expect improved participation from FPIs on account of increased dollar liquidity at the I & E window given inflows from IMF’s SDR allocation and the Eurobond issuance. Accordingly, we see scope for improved activities from both the domestic and foreign investors over the medium term.
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