The Nigerian Exchange Limited (NGX) has stated that the total transactions in the equity market dropped to N379.52 billion in August.
This was made known in its ‘Domestic & Foreign Portfolio Investment Report’ on Tuesday.
The figure represents a decline of N112.09 billion compared to the N491.61 billion reported in July.
The NGX said domestic transactions accounted for N322.05 billion while foreign transactions recorded N57.47 billion.
“As at 31 August 2024, total transactions at the nation’s bourse decreased significantly by 22.80% from N491.61 billion (about $305.02 million) in July 2024 to N379.52 billion (about $237.70 million) in August 2024,” NGX said.
“The performance of the current month when compared to the performance in August 2023 (N262.56 billion) revealed that total transactions increased by 44.55%.
“In August 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by foreign investors by circa 70%.”
NGX said domestic investors accounted for 85 per cent or N322.05 billion in August 2024 transactions compared to N434.09 billion recorded in July 2024 — representing a decrease of 25.81 percent.
On the other hand, NGX said foreign transactions decreased marginally.
“Similarly, total foreign transactions decreased marginally by 0.09% from N57.52 billion (about $35.69 million) to N57.47 billion (about $35.99 million) between July 2024 and August 2024,” the bourse said.
Further analysis showed foreign inflow dropped to N33.09 billion in August, from N37.57 billion reported the previous month.
However, foreign outflow rose from N19.95 billion in July to N24.38 billion in August.
Giving an analysis of the domestic transactions, NGX said retail investors outperformed institutional investors by 12 per cent in the period under review, as the former accounted for 56 per cent of the total domestic transactions, while the latter accounted for 44 per cent.
“A comparison of domestic transactions in the current month and prior month (July 2024) revealed that retail transactions decreased by 33.54% from N271.92 billion in July 2024 to N180.72 billion in August 2024.”
The NGX added that the institutional composition of the domestic market decreased by 12.85 per cent from N162.17 billion in July 2024 to N141.33 billion in August 2024.
