Local transactions hit N1.968tn, beats 2022 result – Report

Bisola David
Bisola David
Local transactions hit N1.968tn, beats 2022 result - Report

The value of domestic transactions on the Nigerian Exchange Limited has reached N1968.4 billion year to date, which is 1.18 percent higher than the total value of domestic transactions for the year 2022, which was N1945 billion.

According to The Punch, as of July 2022, the total value of domestic transactions was N1.49 trillion.

This was announced in the Nigerian Exchange Limited’s latest Domestic & Foreign Portfolio Investment Report for July 2023.

Domestic investors, according to the report, have remained dominant on the local bourse as foreign investors ignore Nigeria and its yet-to-be-won battle with forex, which has worsened with the floating of the Naira since the Central Bank of Nigeria’s mid-June announcement harmonizing segments of the currency markets into the official Investors $ Exporters window.

According to the report, as of the end of July, transaction figures for 2023 show that total domestic transactions are around N1.968 trillion, while total foreign transactions are approximately N185.62 billion.

Domestic transactions on the NGX increased by 83.5 percent to N662.44 billion at the end of July, up from N361.01 billion in June 2023.

Foreign inflows also fell sharply to N9.45 billion in July 2023, from N22.72 billion in June. Foreign inflows increased to N27.51 billion in May, compared to less than N10 billion in prior months of the year.

However, overall foreign transactions fell by 11.37 percent between June 2023 and July 2023, from N45.74 billion (approximately $60.49 million) to N40.54 billion (about $52.58 million).

Meanwhile, market operators’ trading records reveal that overall transactions at the nation’s exchange surged by 72.83 percent from N406.750bn (about $537.87m) in June 2023 to N702.98bn (about $911.91m) in July 2023.

When the current month’s performance was compared to the performance in July 2022 (N101.18bn), total transactions grew by 594.78%. The total value of deals done by domestic investors outpaced transactions executed by foreign investors by almost 88% in July 2023.

The former chairman of FBN Holdings, Oba Otudeko, purchased almost four billion shares of the institution in a deal valued N87.8 billion through a firm in which two of his children have majority stakes.

The transaction is said to be the greatest volume of First Bank shares exchanged in a single day since the stock market began publishing statistics in 2012.

According to a breakdown of domestic transactions, Institutional Investors outpaced Retail Investors by 30% in July 2023. A comparison of domestic transactions in the current month and the previous month (June 2023) shows that retail transactions climbed by 84.67% from N124.52 billion in June to N229.95 billion in July 2023.

Similarly, the domestic market’s institutional composition climbed by 82.88 percent from N236.49 billion in June 2023 to N432.49 billion in July 2023.

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