Nigerian Exchange has recorded N3.968 trillion in equities trading, driven by strong domestic investor participation

Nigerian Exchange Limited (NGX) has recorded a remarkable increase in the value of equities traded, reaching a record high of N3.968 trillion in the nine months leading up to September 30, 2024.

This figure represented a significant rise from the N2.712 trillion worth of stocks traded during the same period in 2023.

Foreign investors contributed N696.88 billion, accounting for 17.56 percent of the total value of stocks traded, while domestic investors dominated the market with N3.271 trillion, or 82.44 percent of total trading volume.

According to the latest report on Domestic and Foreign Portfolio Investment (FPI) released by NGX, foreign inflows during this review period amounted to N310.99 billion, whereas foreign outflows reached N385.89 billion.

The report highlights the performance of domestic investors, with retail investors trading N1.739 trillion worth of stocks and institutional investors contributing N1.531 trillion during the nine-month period.

In September 2024, total transactions on the Nigerian Exchange saw a month-on-month increase of 29.90 percent, rising from N379.52 billion (approximately $237.70 million) in August to N493.01 billion (about $307.84 million).

This is a notable improvement compared to September 2023, where total transactions were valued at N295.80 billion, marking a 66.67 percent increase year-on-year.

In September 2024, domestic investors outperformed foreign investors, executing transactions valued at 84 percent more than their foreign counterparts.

Domestic transactions rose significantly, with total domestic trading increasing by 40.23 percent from N322.05 billion in August to N451.60 billion in September.

Conversely, foreign transactions saw a decline of 27.95 percent, dropping from N57.47 billion (about $35.99 million) in August to N41.41 billion (approximately $25.86 million) in September.

The report also indicates that retail investors surpassed institutional investors, outperforming them by 28 percent. A closer look at the domestic market reveals that retail transactions increased by 59.42 percent, from N180.72 billion in August to N288.10 billion in September, while institutional transactions rose by 15.69 percent, from N141.33 billion to N163.50 billion during the same period.