Tinubu's emergence boosts foreign transactions in stock market to N145bn in 6 months

In the first half of 2023, the total amount of foreign transactions carried out by investors on the floor of the Nigerian Exchange Limited (NGX) increased to N145.08 billion.

Data on Domestic and Foreign Portfolio Investment in Nigeria's Equity as of June 2023 show. This increase coincides with a number of policy changes and the emergence of a new administration.

Legit.ng had earlier examined Tinubu's deft economic moves after 30 days which have been positively received by investors, resulting in a favorable market position that contributed to the growth in the stock value of Nigerian companies.

The Nigerian Stock Exchange had a poor start to the year with total foreign transactions standing at N62.18 billion in the first four months of 2023 due to high inflation, a protracted FX shortage, and growing election-related uncertainty.

However, Just two months later, the amount rose by N82.9 billion, the data shows

Analysts believe that the news around the possible and eventual emergence of the president may have led to the spike. In May and June alone, the stock market saw an 37.16 billion and 45.74 billion respectively, reop.

Meanwhile, in contrast to the N243.48 billion in the same period of 2022, the half year record is still low, according to Legit.ng's analysis.

Domestic transactions dominates

At the end of the reviewed period, there were N1.306 trillion worth of domestic transactions on the Exchange, compared to N145.08 billion worth of foreign transactions.

According to the report, overall transactions at the country's stock exchange climbed by 25.96% from N322.92 billion (or $693.99 million) in May 2023 to N406.75 billion (or $537.87 million) in June 2023. In comparison to June 2022's performance (N156.52 billion), the current month's performance showed a 159.87% rise in total transactions.

Additionally, the total value of domestic investor-executed deals surpassed foreign investor-executed transactions by 78%. While overseas inflows and outflows totaled N22.72 billion and N23.02 billion, respectively, domestic inflows and outflows totaled N180.91 billion and N180.11 billion.

The overall domestic transactions climbed by 26.34 percent from N285.76 billion in May to N361.01 billion in June 2023, according to a further review of all transactions carried out between the current and previous month (May 2023) by Leadership.

Similar to this, between May 2023 and June 2023, total foreign transactions climbed dramatically by 23.09%, from N37.16 billion (about $79.88 million) to N45.74 billion (around $60.49 million).

Domestic transactions fell by 45.30% during a 16-year span, from N3.556 trillion in 2007 to N1.945 trillion in 2022, and foreign transactions similarly fell by 38.47%, from N616 billion to N379 billion. In 2022, total domestic transactions made up around 84 percent of all transactions, while total overseas transactions made up about 16 percent of all transactions.