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The Nigerian Stock Exchange (NGX) witnessed a significant drop in domestic investor activity in April 2024, according to the latest domestic and foreign portfolio investment report. The report reveals a staggering 49.27% decline in domestic transactions compared to March 2024, raising concerns about investor confidence in the Nigerian stock market.
The breakdown of the data paints a more nuanced picture. Both retail and institutional investors contributed to the decline, with retail investors experiencing a sharper drop of 54.89% and institutional transactions dipping by 43.58%. This suggests a broad-based loss of confidence among domestic participants.
Despite the decline in domestic activity, the total value of transactions on the NGX remained lower than March but not as drastically. This is because foreign transactions increased by 28.19%, partially offsetting the decrease in domestic participation. However, domestic transactions still outperformed foreign transactions by about 30% in April.
The NGX report also provided a historical perspective, revealing a decade-long trend, where domestic transactions decreased by 10.94 per cent from N3.556tn in 2007 to N3.167in 2023, while foreign transactions declined by 33.28 per cent over the same period.
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