Foreign portfolio investors at the Nigerian Stock Exchange (NSE) have withdrawn a total of N130.89 billion as preparations for the 2019 general election gather momentum, according to the figures obtained from the NSE.
The domestic and foreign portfolio participation in equity trading report released recently showed that for the first time in 2018, foreign investors outflow outperformed in-flow.
On a monthly basis, the NSE polls trading figures from major custodians and market operators on their Foreign Portfolio Investment flows showed that foreign investors pulled out N130.89 billion in May, which was the highest since beginning of the year 2018.
Foreign portfolio investment outflows from the country’s stock market rose by 124.7 per cent in May 2018, with the market capitalisation of listed equities losing N1.146 trillion as it fell to N13.802 trillion.
The value of foreign outflow in May was the highest in the year when compared with N74.64 billion, N38.33 billion, N62.50 billion and N58.25 billion pulled out between January and April
this year.
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transactions on the NSE (equities only), according to the report.
Also, there was a 3.45 percent decrease in foreign in-flows to N62.06 billion in May from N64.28 billion in April. While the foreign outflows increased from N58.25 billion in April to N130.89 billion in May 2018.
