The Nigerian Exchange Limited has reported a 12.0 percent decline in total transactions value of Domestic and Foreign Portfolio in November, 2024, as the figure dropped to N442.34 billion down from N502.73 billion in October 2024.
This was contained in the Domestic and Foreign Portfolio Report of the NGX release last recently.
Financial experts say the lower participation in the local bourse may be primarily attributed to investors’ preference for debt securities due to attractive yields in the fixed-income market.
Specifically, domestic inflows which contributed 90.7 percent of gross transactions dipped by 11.8 percent month-on-month (m/m) to N401.40 billion compared to N455.27 billion in October due to a decline in collections from institutional investors, down by 27.8 percent m/m) amid increases from retail investors which grew by 14.9 percent m/m).
On the other hand, foreign inflows contributed 9.3 percent of gross transactions dropped after a month of expansion, declining by 13.7 percent m/m to N40.94 billion in November as against N47.46 billion posted in October.
Commenting on the report, market analysts from Cordros Securities Limited said they expect domestic investors to continue to contribute the most to total transaction value.
However, they “think buying activities, generally, will be constrained by elevated yields in the fixed income market,” adding that the ongoing geopolitical tensions are likely to constrain FPI participation in the Nigerian stock exchange market.
