MON JUNE 02 2025-theGBJournal| Total transactions in the Nigerian equities market fell significantly in April, a drop 56.8% m/m to N482.04 billion in April (March: N1.12 trillion), according to data from the Domestic and Foreign Portfolio Report of the Nigerian Exchange (NGX).
Analysis of the data shows that the performance was due to the normalisation of inflows from foreign sources, which were primarily boosted by block trade transactions in the previous month.
Specifically, inflows from foreign investors (13.1% of gross transactions) dipped by 91.0% m/m to N63.07 billion in April (March: N699.89 billion).
On the other hand, inflows from domestic investors (86.9% of gross transactions) marginally increased by 0.8% m/m to N418.97 billion (March: N415.62 billion) due to a rise in transactions from institutional (+8.8% m/m) amid a decline in transactions from retail investors (-8.0% m/m).
Net flows turned positive in April at N5.74 billion (March: -N3.67 billion), driven by strong net domestic inflows of N15.53 billion that outweighed net foreign outflows of N9.79 billion. In the near term, we expect domestic investors to continue contributing the most to total transaction value, with the anticipated decline in yields in the fixed income market supporting buying activities.
On the other hand, while a more efficient FX market is expected to support foreign investors’ participation in the equities market, existing global uncertainties remain a downside risk to inflows.
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