The amount of equity traded by foreign investors increased 437 percent to N334.01 billion in the first four months of 2024 from N62.18 billion in the same period the previous year.
According to April trading data on domestic and foreign portfolio participation in equity trading obtained from the Nigeria Exchange Limited (NGX), stock investors in Nigeria exchanged equities valued at N1.894 trillion from January to April 30, 2024, compared with N721.44 billion recorded in the same period of 2023.
Of all the equity transactions at that time, foreign investors made up 17.63 percent (N334.01 billion), while local investors made up 82.37 percent (N1.560 trillion).
In the four months leading up to April 2023, foreign investors in Nigeria’s stock market traded stocks valued at just N62.18 billion, or 8.62 percent, while domestic investors moved N659.26 billion, or 91.38 percent.
At its high in April, foreign investors’ holdings of equities accounted for 34.90 percent of the entire value of stocks traded. In April, international investors exchanged a record N120.83 billion worth of stocks, while local investors accounted for N225.40 billion, or 65.10 percent, of all equity deals.
The trading week ending on June 14 saw a positive 33.64 percent return on Nigeria’s stock market in 2024, as a result of increased buying activity in firms related to oil and gas, banking, and insurance.
In the four months leading up to April 2024, international investors showed interest in Nigerian equities; yet, the market is still under pressure as investors seek safety in the fixed income (FI) area despite the enticing yield.
Foreign investors accounted for N94.26 billion (17.50 percent) of the equities traded in March 2024, while domestic investors contributed N444.28 billion (82.50%).
Foreign investors in stocks traded N65.81 billion worth of stocks in February, accounting for 18.39% of the total transaction value, while local investors traded N292.07 billion worth of stocks, or 81.61 percent.
Foreign investors held N53.11 billion, or 8.15%, of the total in January, while local investors had N598.41 billion, or 91.85%.
Ten stockbroking firms handled N1.024 trillion worth of equity transactions in the four months leading up to April 30, which represents 54.11 percent of the entire value of stocks traded on the NGX during that time.
The NGX Broker Performance Report lists the following 10 stockbroking companies as having transacted this amount of equity during the evaluation period, which lasted four months, they are; Apel Asset Limited, Morgan Capital Securities Limited, EFG Hermes Nigeria Limited, Apt Securities and Funds, CardinalStone Securities Limited, Stanbic IBTC Stockbrokers Limited, Meristem Stockbrokers Limited, Cordros Securities Limited, Chapel Hill Denham Securities Limited, and Meristem Stockbrokers Limited.
Due to the low prices of fundamentally strong stocks, investors continue to take positions in them despite the fixed-income market’s high returns.
The highest monthly (MoM) value of stocks traded during the four-month review period was N651.52 billion in January. February (N357.88 billion), March (N538.54 billion), and April (N346.23 billion) came next.
Over four months, foreign inflows totaled N135.95 billion, while outflows were estimated to have been N198.06 billion.
During the study’s four-month period, domestic institutional investors accounted for N788.50 billion in stock trades, while domestic retail investors traded N771.66 billion worth of stocks.
In their market outlook for the week starting on June 19, Meristem Research analysts stated that they expect the stock market to perform in a mixed manner, led by both cautious trading and sustained bullish momentum.
After trading stocks worth N197.535 billion, or 10.43 percent of the total value of shares traded within the same period, CardinalStone Securities Limited led the league of top 10 brokers by value of the transaction.
Then came Stanbic IBTC Stockbrokers Limited, which recorded equity transactions of N185.330 billion, or 9.79 percent. Third on the list with N126.715 billion (6.69%) in equity trades was United Capital Securities Limited.
The remaining ones are Meristem Stockbrokers Limited (N73.650 billion or 3.89 percent), Apt Securities and Funds (N110.305 billion or 5.82 percent), EFG Hermes Nigeria Limited (N96.783 billion or 5.11 percent), and Cordros Securities Limited (N73.143 billion or 3.86 percent).
Additionally, Chapel Hill Denham Securities Limited (N57.149 billion, or 3.02 percent), Apel Asset Limited (N53.635 billion, or 2.83 percent), and Morgan Capital Securities Limited (N50.605 billion, or 2.67 percent) round out the top 10 stockbrokers based on the value of equities traded during the four months under consideration.
The Unstructured Supplementary Service Data (USSD) platform, which enables consumers to get real-time stock market information and establish direct connections with stockbrokers by just dialing *5474# on their cell phone, was recently introduced, as announced by the NGX.
