The Nigerian Exchange Limited (NGX) reports that domestic and foreign portfolio transactions in Nigeria’s equity market totaled N346.23 billion in April 2024.
The News Chronicles was provided with a statement from the NGX that included this information.
The Exchange reports that as of April 30, 2024, overall transactions at the country’s exchange had dropped from N538.54 billion (about $404.69 million) in March 2024 to N346.23 billion (around $260.24 million). This is a 35.71% fall.
The decrease could also be linked to the generally negative attitudes of investors, who have demonstrated cautious actions due to the ongoing volatility in the Nigerian market.
A substantial fall in the market value of N3.57 trillion was suffered by the NGX All-Share Index in April as a result of Central Bank of Nigeria (CBN) policy pronouncements that tended to favor fixed-income assets.
A more thorough examination of all the transactions carried out in April 2024 compared to March 2024 showed that there was a 49.27% drop in total domestic transactions from N444.28 billion in March to N225.40 billion in April 2024.
However, between March 2024 and April 2024, the total amount of foreign transactions climbed by 28.19%, from N94.26 billion (about $70.83 million) to N120.83 billion (around $90.83 million).Â
Retail and institutional investors
Institutional investors outpaced individual investors by 10%, according to the NGX. Retail sales dropped by 54.89% from N223.37 billion in March 2024 to N100.77 billion in April 2024, according to a comparison of domestic transactions.
The institutional makeup of the domestic market also declined, going from N220.91 billion in March 2024 to N124.63 billion in April 2024, a 43.58% drop.
Performance in more than ten years
Domestic transactions plummeted 10.94% between 2007 and 2023, from N3.556 trillion to N3.167 trillion, while international transactions fell 33.28% between 2007 and 2023, from N616 billion to N411 billion.
About 89% of all transactions in 2023 were made within the country; only 11% of all transactions during that time were made outside of the country.
Things To Note
The NGX All-Share Index saw a significant downturn in April, which cost the market value of N3.57 trillion.
The Central Bank of Nigeria’s (CBN) various policy decisions had an impact on the index’s notable decline.
The new recapitalization plan for commercial banks, which intends to generate an estimated N4 trillion in extra capital over the next two years, was a noteworthy announcement.
The Monetary Policy Committee (MPC) of the CBN decided to raise the benchmark interest rate by 200 basis points, from 22.75% to 24.75%, and the market responded to this announcement as well.
The local stock exchange saw a 6% fall as a result of the significant rate hike, which sparked stronger sell-offs. The benchmark index closed at 98,225.63 points.
Notably, the NGX All-Share Index closed at 98,225.63 points, below the 100,000-point mark. This is a sharp contrast to the index’s peak of 104,562.06 points at the end of March 2024.Â
