NSE loses monthly impetus, falls by 67.36%

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FROM BAYO AZEEZ, LAGOS –Total transaction value at the Nigerian Stock Exchange (NSE) has significantly plunged by 67.36 per cent from N396.86 billion recorded in August to N129.52 billion in September 2017.

Although the aggregate value of transactions from January to September 2017 sustained positive stand at N1.655 trillion in 2017, floating 78.60 per cent atop N927.08 billion recorded in the comparative period of 2016.

Latest data released by the Exchange also indicates that foreign investors outperformed domestic investors as the former transacted N84.27 billion or 65.06 per cent of total value compared with N45.25 billion invested by the latter, their domestic counterparts.

Despite this, total foreign transactions decreased significantly by 59.55 per cent from N208.34 billion recorded in August to N84.27 billion last month.

Total domestic transactions also followed the downward trend as it nosedived by 68.77 per cent from N188.52 billion in the previous month to N45.25 billion in September.

It was also noted that within the period, foreign investors invested more money in Nigeria than they repatriated as foreign inflows covered 57.46 per cent of the FPI at N48.42 billion against N35.85 billion that escaped the country within the month.

Meanwhile, highlights the domestic composition of transactions on the Exchange between January and September 2017 shows that the institutional composition of the domestic market decreased by 85.46 per cent from N149.41 billion recorded in August to N21.72 billion in September 2017.

The retail side of the domestic divide also decreased by 39.84 per cent from N39.11 billion in August to N23.53 billion September.

This indicates a higher participation by institutional investors over their retail counterparts.

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