Market News
Foreign transactions fall 91% to N63bn on NGX - PUNCH
Foreign portfolio transactions on the Nigerian Exchange Limited declined sharply by 90.99 per cent in April 2025, falling to N63.07bn from N699.89bn recorded in March, according to the latest Domestic and Foreign Portfolio Investment report released by the NGX.
The sharp drop in foreign participation followed a surge recorded in March due to large block trades that significantly boosted foreign inflows. With the absence of such transactions in April, foreign investor activity slumped, accounting for just 13.08 per cent of total market turnover for the month.
Overall, total transactions on the exchange declined by 56.79 per cent, from N1.115 tn in March to N482.04 bn in April. In dollar terms, this amounted to approximately $301.90m in April, compared to $725.86m in March, using official exchange rates provided by the Central Bank of Nigeria for the respective months.
Domestic investors, however, sustained market momentum despite the decline in foreign participation. Domestic transactions rose marginally by 0.81 per cent, from N415.62bn in March to N418.97bn in April. Domestic investors accounted for 86.92 per cent of the total transaction value during the month.
A closer look at domestic participation reveals that institutional investors drove the majority of the trades. Institutional transactions increased by 8.77 per cent from N218.50bn in March to N237.66bn in April. Conversely, retail transactions declined by 8.02 per cent, from N197.12bn to N181.31bn over the same period.
The data further shows that total domestic and foreign portfolio transactions from January to April 2025 amounted to N2.714tn, with domestic investors accounting for N1.837tn, representing 67.68 per cent, while foreign investors contributed N877.12bn, or 32.32 per cent.
Comparatively, the same period in 2024 recorded total transactions of N1.894 tn, comprising N1.560 N1.560tn in domestic transactions and N334.01bn in foreign transactions, highlighting a significant year-on-year increase in foreign participation for the first four months of 2025 despite the April setback.
On a long-term trajectory, the report noted that domestic transactions increased by 33.15 per cent from N3.556tn in 2007 to N4.735tn in 2024, while foreign transactions grew by 38.31 per cent from N616bn to N852bn over the same period.
The PUNCH reported that the Nigerian Exchange Limited recorded a sharp decline in trading activity in February 2025, as total transactions dropped by 16.07 per cent to N509.47bn from N607.05bn in January.
