Turnover at the Nigerian stock market rode on the back of increased foreign inflows to a new record of N10.54 trillion as foreign portfolio investors (FPIs) showed improved tendency for long-term investments in Nigerian assets.

Trading data at the Nigerian stock market reviewed yesterday showed that total transactions have more than doubled to N10.54 trillion over the past 11 months, driven by increased participation by foreign investors.

The rate of participation by FPIs has increased by some 479 basis points with retained funds or surpluses from foreign transactions so far this year nearly half of their total transactions in the previous year.

As against the previous trend where outflows were more than inflows, there has been a considerable increase in inflows compared to outflows under the new bullish sentiment.

Nigerian equities closed weekend with average year-to-date return of 47.73 per cent after investors tickled a new rally that saw the market gaining N1.67 trillion last week.

The capital gain of 47.73 per cent ranks among the five highest gains globally and represents net inflation-adjusted gain of 33.28 per cent. Nigeria’s inflation rate stands at 14.45 per cent. 

With the traditional year-end rally expected to deepen this week, there are indications that total market value of Nigerian equities market would hit N100 trillion mark by the year-end. Aggregate market value of Nigerian equities rose from N95.26 trillion to N96.94 trillion last week.

Total transactions by FPIs jumped by 178.8 per cent from N785.28 billion to N2.189 trillion. Foreign inflows had grown by 218.9 per cent from N370.15 billion to N1.18 trillion, while outflows were slower at 142.89 per cent from N415.13 billion to N1.001 trillion.

The proportion of foreign to domestic participation shifted from the previous 15.98 per cent-84.02 per cent to 20.77 per cent—79.23 per cent, underscoring the stronger influence of FPIs.

Source: thenationonlineeng