Foreign transactions at NGX drop to $49.3m

Foreign transactions on the Nigerian Exchange Limited (NGX) dropped by 27.59 per cent from N28.02 billion (about $68.31 million) to N20.29 billion (about $49.33 million) between April 2021 and May 2021.

This was even as the value of purchase transactions (FPI inflow) on equities fell by 53.28 per cent in the month under review. Data obtained from the NGX Domestic and Foreign Portfolio Investment (FPI) flows report for May 2021 revealed that FPI inflows dropped further to N13.01 billion from N18.02 billion recorded in April 2021, resulting in a 53.28 per cent decrease, while outflows fell to N7.28 billion from N9.82 billion recorded in the previous month.

Analysis of the report revealed that the total transactions at the nation’s bourse fell 39.23 per cent from N159.93 billion in April 2021 to N97.19 billion in the month under review -the lowest since August 2020 (N94.45 billion).

The performance of the current month when compared to the performance in May 2020 (N119.15 billion) revealed that total transactions dropped 18.43 per cent. In May 2021, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 58 per cent.