Nigeria | Investors show confidence in Nigerian shares

LAGOS, Nigeria, Capital Markets in Africa — Total transactions at the Nigerian Stock Exchange (NSE) rose from N84.10 billion recorded in January 2016 to N117.27 billion (about $0.60 billion) in February 2016 (about 39.44% increase), according to data released by NSE. However, comparing to the same period in 2015, total transactions decreased by 36.44% from the N184.49 recorded in February 2015.

The data also highlighted that domestic investors significantly outperformed foreign investors by 27.04%. Domestic transactions increased from 48.43% in January 2016 to 63.52% in February 2016 while foreign portfolio investment transactions decreased from 51.57% to 36.48% over the same period.

Furthermore, the stats shows that the monthly foreign outflows outpaced inflows which was in-line with the same period in 2015. Foreign outflows increased by 20.79% from N26.36 billion in January 2016 to N31.84 billion while foreign inflows decreased by 35.68% from N17.01 billion in January 2016 to N10.94 billion in February 2016.

Looking at the domestic investors, institutional investors transacted N38.25 billion (c. US$ 0.2 billion) which accounted for 51.14% of the domestic transactions whilst the retail composition accounted for 48.86% in the same period. In comparison to the January 2016, institutional investors transactions surged by 82.89 % from N21.85 billion recorded in January 2016 and domestic retail investor went down by 91.95 percent to settle at N 36.24 billion.