The Nigerian Stock Exchange (NSE), said that foreign investors withdrew the sum of N40.07 billion from the equities market in the month of September.
This is contained in a domestic and foreign portfolio participation report in equity trading for September 2015 posted on NSE web site.
According to the report, Monthly Foreign Portfolio Investment (FPI) transactions at the exchange decreased to N69.33 billion in September from N81.13 billion at the end of August 2015, representing a decrease of 14.54 percent. Domestic investors conceded about 6.72 per cent of trading to foreign investors compared to the 11.38 per cent they conceded in the previous month as domestic transactions increased from 44.31 per cent to 46.64 per cent while FPI transactions decreased from 55.69 percent to 53.36 percent over the same period.
Foreign portfolio investors’ inflows went down from N33.06 billion to N29.26 billion, while the outflows accounted also declined to N40.07 from, N48.07 in August.
In comparison to the same period in 2014, total FPI transactions decreased by 69.42 percent, whilst the total domestic transactions decreased by 79.53 percent.
Market analysts said “The data confirms that foreign investors have continued to withdraw funds out of the country while reducing inflows of funds into the market.
They said that it is likely that October will be worse considering the level of sell-offs that had occurred with the NSE All Share Index declined by 6.53 per cent at the end of October 2015.
Managing director of Highcap Securities Limited, Mr. David Adonri said, “The recent decline of the Nigerian stock market is due to several factors. The economic situation has affected the stock market. The foreign exchange market is a factor that affects the market.”
According to him, the weak naira is affecting investors to invest in the market coupled with rising inflation. Also, the non appointment of ministers is also another factor that has affected the market. We also have the insurgent situation in the country. Investors are weary of the insecurity in the country and are waiting for the government to assure them of drastic measures aimed to addressing the situation.
Source : Leadership