Foreign investment in stock market rises 168% to N118.92bn

Nigeria's Foreign portfolio investment, FPI, into the stock market rose by 167.8 percent, Year-on-Year (YoY), to N118.92 billion in Febr...

Nigeria's Foreign portfolio investment, FPI, into the stock market rose by 167.8 percent, Year-on-Year (YoY), to N118.92 billion in February 2024 from N44.52 billion in the corresponding period in 2023 buoyed by improved liquidity in the foreign exchange (FX) market following reforms by the Central Bank of Nigeria, CBN. This was disclosed by tbe Nigerian Exchange Limited (NGX) in its Domestic and Foreign Portfolio Investment report for February 2024, which showed a 0.3 percentage point increase to 11.78 per cent in share of FPI in the total equities transaction of N1.009 trillion during the period.The foreign investors stake increased Month-on-Month (MoM) by 23.9 percent to N65.81 billion from N53.11 billion in January 2024.Also the foreign portfolio investors contribution to the total equities transaction rose to 18.39 percent from 8.15 percent between January and February 2024.The Year-to-Date, YtD, FPI inflow at N40.71 billion, represents 37.9 percent of the total foreign investors commitment, while outflow at N78.21 billion, represents 62.1 percent of the foreign portfolio investment. Oluwaseun Dosumu, Head of Research, Parthian Securities, said:The resurgence of foreign investors in the Nigerian market is contingent upon the policies and dynamics of the foreign exchange market in 2024. The preceding year, 2023, witnessed a weakened state of exchange rate fundamentals within the Nigerian forex market, primarily attributed to a decline in foreign exchange supply. With the anticipation of an enhancement in supply during the year, there is a potential for a modest upturn in foreign portfolio investment in the Nigerian Exchange. The post Foreign investment in stock market rises 168% to N118.92bn appeared first on Linda Ikeji Blog.