Nigerian Stocks Trade Shrank in January as Foreigners Keep Off

By Bashir Olanrewaju

Transactions at the Nigerian Stock Exchange shrank 13.7 percent in January from the previous month as local investors retreated while foreign investors, largely cautious, stayed away.

The value of transactions dropped  to 232.5 billion naira from 269.24 billion naira in December, according to a report published on the website of the stock exchange.

“When compared to the performance in
January 2020 (235.46 billion naira), total transactions decreased marginally by 1.27 percent,” NSE said in the report.

Though domestic Investors continued to maintain their lead over foreign investors in January, this time by about 60 percent, their transactions still fell 7.21 percent from its level in December. Trading by foreign investors took an even bigger tumble, plunging 32 percent to 47.53 billion naira from 69.92 billion in December.

Between 2013 and 2015, transactions by foreign investors exceeded those of domestic buyers before losing the edge in 2016. They topped again in 2018 but have since been in a steady decline when compared with domestic investors.