…Domestic investors’ inflows increased by 38.8% m/m to N581.59 billion (April: N418.97 billion)
MON JUNE 30 2025-theGBJournal| Total transactions in the Nigerian equities market surged by 45.3% m/m to N700.50 billion in May (April: N482.04 billion), according to the data from the Domestic and Foreign Portfolio Report of the Nigerian Exchange (NGX).
The performance was driven by the higher participation from both domestic (83.0% of gross transactions) and foreign (17.0% of gross transactions) investors.
Domestic investors’ inflows increased by 38.8% m/m to N581.59 billion (April: N418.97 billion), driven by a rise in transactions from retail investors (+86.1% m/m) and institutional investors (+2.7% m/m).
At the same time, foreign investor inflows rebounded after a month of decline, rising by 88.5% m/m to N118.91 billion (April: N63.07 billion), partly supported by moderating fixed income yields and improved market sentiment, which boosted foreign investors’ demand in the equities market.
Net flows declined by 54.0% m/m to N2.64 billion (April: N5.74 billion), driven by strong net foreign inflows of N13.31 billion that outweighed net domestic outflows of N10.67 billion.
In the near term, analysts expect domestic investors to remain the primary drivers of transaction value, supported by an anticipated decline in fixed income yields, which is expected to sustain buying interest.
Furthermore, the relative stability of the naira is likely to encourage increased participation from foreign investors in the equities market; however, prevailing global uncertainties present a downside risk to sustained inflows.
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