Stock Market: Investors Withdraw N339.06bn In 3 Months

Foreign and domestic investors pulled out a total of N339.06bn from the Nigerian stock market in the first three months of the year 2021.

According to data from the Nigerian Exchange Limited, the foreign portfolio investors sold Nigerian stocks worth N90.12bn in the first quarter while domestic investors withdrew N248.94bn from the market.

The foreign investors withdrew N30.79bn in January; N39.05bn in February, and N20.28bn in March.

Also, the domestic investors pulled out N86.35bn in January; N69.28bn in February, and N93.31bn in March.

Meanwhile, the total transactions at the nation’s bourse increased by 5.99 percent from N215.58bn (about $525.21m) in February 2021 to N228.49bn (about $560.55m) in March. The NGX said when compared to the performance in March 2020 (N242.91bn), total transactions decreased by 5.94 percent in March 2021.

Also, the total value of transactions executed by domestic investors in March outperformed transactions executed by foreign investors by about 64 per cent.

Other Analysis

The total transactions executed revealed that total domestic transactions increased by 22.37 per cent from N153.51bn in February to N187.85bn in March 2021.

Total foreign transactions decreased by 34.53 percent from N62.07bn in February (about $151.23m) to N40.64bn (about $99.70m) in March.

The NGX said, “Retail investors outperformed institutional investors by 16 per cent. A comparison of domestic transactions in the current and prior month (February 2021) revealed that retail transactions increased by 101.77 per cent from N53.80bn in February 2021 to N108.55bn in March 2021.

“However, the institutional composition of the domestic market decreased by 20.47 per cent from N99.71bn in February 2021 to N79.30bn in March 2021.”

The bourse said total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, while foreign transactions accounted for about 26 per cent of the total transactions in the same period.

The transaction data for 2021 showed that total foreign transactions were about N150.23bn, while total domestic transactions were about N526.30bn.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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