FPI drops to N102.56bn in March

Zero Option for Corruption: Ngozi Okonjo-Iweala


Foreign Portfolio Investment (FPI) at the nation’s stock market dropped to N102.56 billion in March from N133.92 billion it recorded the previous month even as foreign in­vestors pulled out N29.19 billion from the market the same period

Activities of FPI out­flows, which outpaced in­flows in the first quarter, showed that in January, the outflows which stood at N51.08 billion, went up to N81.60 billion in February and declined to N52.41 bil­lion in the review period.

Also, the domestic trans­actions which was N50.54 billion at the end of Febru­ary, increased to N81.46 billion at the end of March, up 61.18 per cent. Do­mestic investors conceded about 11.46 per cent of trading to foreign inves­tors as foreign transactions decreased from 72.61 per cent to 55.73 per cent while domestic transactions in­creased from 27.39 per cent to 44.27 per cent over the same period.

In comparison to the same period in 2014, total FPI transactions decreased by 21.44 per cent, whilst the total domestic transac­tions increased by 124.47 per cent. FPI outflows out­paced inflows which was consistent with the same period in 2014. Overall, there was a 10.30 per cent increase in total transac­tions in comparison to the same period in 2014.

The NSE said that total FPI transactions of N616 billion which accounted for 14.8 per cent of total trans­actions in 2007 increased over the years to N1.539 billion representing 57.5 per cent of total transac­tions in 2014 (An increase of 42.7 per cent over the 7year period).

Domestic transactions on the other hand started at N3.556 billion representing 85.2 per cent in 2007, but decreased significantly to N1.137 billion representing 42.5 per cent of total trans­actions in 2014 (A sharp decline of 42.7 per cent in the 7 years.

According to capital market analysts, the exit of foreign investors from the equities market in the first quarter following uncer­tainty in the economic and political state of the coun­try. They believed that with the peaceful election a re­turn of foreign investors to the market was likely soon.

“Foreign investors had been skeptical about the Nigerian markets since late last year, unnerved by po­litical uncertainty before the vote as well as the sharp fall in the global price of oil which negatively impacted the currency, triggering de­valuation in November,” they said.

Source : SunOnline

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