Record N349bn Hot Money Entered and Exited Nigerian Stocks in March

Foreign portfolio investment, also known as hot money, jumped to a record high of N349.97 billion in March from N18.05 billion in the previous month, according to data from the Nigerian Exchange Limited (NGX).

The surge in foreign inflow was nearly offset by an outflow of N349.92 billion, which climbed from N24.3 billion in February.

The total transactions at the bourse crossed the trillion-naira mark for the first time, up 118.95 percent to N1.12 trillion, with foreign deals accounting for 62.74 percent.

The significant increase in the total value of foreign transactions in March was due to block trades, the NGX said in a report without disclosing the overseas investor(s) that loaded up on Nigerian stocks.

For the first time since December 2019, foreign investors dominated the stock market in March with N699.89 billion deals compared to domestic transactions worth N415.62 billion.

Domestic transactions declined by 10.98 percent from N466.82 billion in February, while foreign deals jumped 1,541 percent from N42.65 billion, the NGX data shows.