Nigerian Exchange Limited (NGX), has said that the entire value of portfolio transactions in Nigeria’s equities market in April 2024, including local and international, was N346.23 billion.
THE MATRIX was provided with a statement from the NGX that included this information. The Exchange reports that as of April 30, 2024, overall transactions at the country’s exchange had dropped from N538.54 billion (about $404.69 million) in March 2024 to N346.23 billion (around $260.24 million).
This is a 35.71% fall. The decrease could also be linked to the general negative attitudes of investors, who have demonstrated cautious actions due to the ongoing volatility in the Nigerian market.
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The NGX All-Share Index experienced a significant decline in April, losing N3.57 trillion in market value following policy announcements from the Central Bank of Nigeria (CBN) that tended to favour fixed-income securities.
A further analysis of the total transactions executed between April and the prior month (March 2024) revealed that total domestic transactions decreased by 49.27%, from N444.28 billion in March to N225.40 billion in April 2024.
However, total foreign transactions increased by 28.19% from N94.26 billion (about $70.83 million) to N120.83 billion (about $90.83 million) between March 2024 and April 2024.
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Institutional and retail investors
According to the NGX, institutional investors outperformed retail investors by 10%. A comparison of domestic transactions revealed that retail transactions decreased by 54.89% from N223.37 billion in March to N100.77 billion in April 2024.
Similarly, the institutional composition of the domestic market decreased by 43.58% from N220.91 billion in March 2024 to N124.63 billion in April 2024.
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Performance in over a decade
Over a 16-year period, domestic transactions decreased by 10.94% from N3.556trillion in 2007 to N3.167trillion in 2023; whilst foreign transactions also fell by 33.28% from N616billion to N411billion over the same period.
Total domestic transactions accounted for about 89% of the total transactions carried out in 2023, whilst foreign transactions accounted for only 11% of the total transactions in the same period.
