Foreign Portfolio Investment In The Stock Market, Growing Rapidly

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The Nigerian Stock Exchange has released its report on domestic and foreign portfolio participation in equity trading for the period ended 31st March 2018.

Foreign Portfolio Investors (FPIs) report for the first quarter ended March 31st, showed that transactions by foreign investors grew by 80.9 percent to ₦381.82 billion in the first quarter compared with ₦211.06 billion recorded in the corresponding period last year.

The report showed a positive net foreign inflow of ₦30.88 billion compared with a negative net foreign investment position of ₦86.36 billion in the first quarter of last year.

The report shows foreign inflows and outflows rose to ₦206.35 billion and ₦175.47 billion in first quarter 2018, indicating a positive net foreign investment position of ₦30.9 billion.

Total foreign inflow and outflow of ₦62.35 billion and ₦148.71 billion were recorded in the comparable period of 2017, which left the country with net FPI deficit of ₦86.36 billion.

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Also, the monthly analysis showed a positive trend in net foreign investment inflow in the first quarter of the year.

Foreign inflow totaled ₦91.75 billion in January as against outflow of ₦74.64 billion.

Foreign inflow and outflow stood at ₦44.89 billion and ₦38.33 billion in February while foreign inflow and outflow recovered hit ₦69.71 billion and ₦62.50 billion in March.

On the aggregate, total foreign transactions stood at ₦166.39 billion in January, dipped to ₦83.22 billion in February and rose by 59 percent to ₦132.21 billion in March.

Total transactions at the equities market in the first quarter stood at ₦878.97 billion compared with ₦454.48 billion recorded in first quarter 2017.

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Domestic investors had accounted for ₦497.15 billion in the first quarter as against ₦243.42 billion last year.

The report is regarded as a credible gauge of FPI as it coordinates data from nearly all active investment bankers and stockbrokers.

The report uses two key indicators-inflow and outflow to gauge foreign investors’mood and participation in the stock market as a barometer for the economy.

Foreign portfolio investment outflow includes sales transactions or liquidation of equity portfolio investments through the stock market while inflow includes purchase transactions on the NSE.

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Betty Chigozirim
Betty Chigozirim is a passionate Writer, Editor, Speaker, Poet, Blogger and a bunch of many creative abilities. A trained Information Professional @Abia State University, a Public Speaker/Corporate Presenter and also a Certified Project Management Professional. She is a calculated risk taker with deep tech knowledge on investment, inspiration and lifestyle, with many online and offline publications to her credit. She is a Writer and Editor for Investment Watch; and most of her publications are geared towards inspiring people towards the right investment, Investment Opportunities, Personal Finance, Economy and Investment News. When she's not speaking, writing or exploring any of her creative abilities, you sure can find her reading, conversing with family and friends or finding a solution to a problem for the 13th Billionth time! You can follow/contact Betty by clicking any of the below: