More foreign investors snub Nigerian stocks amid FX crisis
Amid lingering foreign exchange scarcity in Nigeria, the foreign inflows into the stock market plunged by 67.25 percent in the first quarter of this year compared to the same period in 2022, official data obtained by Markets Reporters show.
Foreign investors injected N18.12 billion into the market in Q1 2023, down from N55.33 billion a year earlier, according to the Nigerian Exchange Limited.
They unloaded Nigerian stocks worth N35.59 billion, compared to the N73.58 billion they pulled out of the market in Q1 2022.
Total transactions at the nation’s bourse dropped to N146.22 billion in March from N188.91 billion in the previous month.
“In March 2023, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 88 percent,” the NGX said.
It said the total domestic transactions decreased by 19.06 percent to N137.03 billion in March 2023, while the foreign transactions tumble by 53.16 percent to N9.19 billion.
The NGX data show that retail transactions increased by 51.85 percent to N52.83 billion in March, while the deals by institutional investors fell by 37.40 percent to N84.20 billion.
