The Nigerian Alternate (NGX) recorded a complete transaction worth of N502.73 billion (roughly $300.05 million) for home and overseas portfolio investments in October 2024.
This represents a modest 1.97% enhance from the N493.01 billion ($307.84 million) posted in September 2024.
Whereas the Naira’s depreciation from N1,601.52/$1 in September to N1,675.49/$1 in October resulted in a decrease greenback valuation regardless of larger nominal values in Naira, the transaction determine nonetheless represents the very best month-to-month efficiency within the second half of the 12 months.
This additionally ranks because the third-highest month-to-month efficiency in 2024, trailing March (N538.54 billion) and January (N651.52 billion).
12 months-to-date (YTD) knowledge reveals that the alternate has recorded N4.47 trillion ($2.67 billion) in complete transactions, the second-highest annual determine over the past 17 years, surpassed solely by 2007.
Home Buyers Lead the Method
Home traders dominated October’s transactions, accounting for N455.27 billion ($272.25 million), which represents 90.56% of complete market exercise.
- This determine marks a slight enhance from N451.6 billion ($281.98 million) in September.
- Then again, overseas portfolio investments (FPI) contributed N47.46 billion ($28.33 million), up from N41.41 billion ($25.86 million) within the prior month, reflecting a 14.61% enhance in overseas exercise.
- Institutional traders drove home participation, with transactions surging by 74.45%, from N163.5 billion in September to N285.23 billion ($170.14 million) in October.
- Conversely, home retail participation dropped sharply by 40.98%, from N288.1 billion ($180 million) to N170.04 billion ($101.42 million) over the identical interval.
Overseas Participation: Gradual Restoration Amid Forex Volatility
Overseas inflows into the market stood at N33.31 billion ($19.87 million), in comparison with N14.15 billion ($8.45 million) in outflows, leading to a optimistic web influx.
- Nevertheless, overseas participation stays modest, accounting for simply 9.44% of complete transactions.
- The lowered exercise of overseas traders aligns with persistent macroeconomic challenges, together with the Naira’s volatility and uncertainties surrounding Nigeria’s fiscal and financial insurance policies.
- Whereas excessive rates of interest provided by the Central Bank of Nigeria have been anticipated to draw overseas inflows, the fairness market has but to totally profit from these coverage measures.
Vital 12 months-on-12 months Progress
The overall transaction worth of N502.73 billion ($300.05 million) in October represents a 127.54% enhance in comparison with October 2023, when transactions have been valued at N220.94 billion ($138 million).
- YTD, home traders have contributed N3.73 trillion ($2.23 billion), accounting for 83.35% of complete exercise, whereas overseas traders have contributed N744.34 billion ($445 million), or 16.65%.
- The historic development exhibits home dominance has grown over time, with overseas transactions declining by 33.28% since 2007, whereas home transactions have seen a smaller decline of 10.94% in the identical interval.
- This highlights the reliance of the Nigerian equities market on native capital for liquidity and resilience.
Regardless of challenges corresponding to forex devaluation and lowered overseas investor curiosity, the NGX All-Share Index rose 0.25% in October, pushing the market’s year-to-date achieve to a formidable 32%.
Be First to Comment