AFRICANGLOBE – Foreign investment, comprising inflows and outflows of foreign portfolios, in Nigeria’s stock market has hit N747 billion ($4.7 billion), affirming growing international participation in emerging African financial markets.
Data from the Nigerian Stock Exchange (NSE) shows foreign transactions for January down till March stood at N217.57 billion ($1.37 billion), representing 42.7 percent of the total N510.1 billion ($3.22 billion) worth of transactions posted during the period.
The positive early year figures were followed by N365.07 billion ($2.3 billion) recorded during April through June, while N93.71 billion ($591 million) worth of investment was recorded in July. The amount for July and August stood at N164.59 billion ($1.04 billion).
Speaking on the growing trend of FDI into Nigeria, NSE CEO, Mr. Oscar Onyema, said recent market-friendly reforms implemented by the exchange had positively impacted the stock market, making it the 2nd fastest-growing African bourse, at 33 percent and providing an attractive destination for investment seekers.
“Last year, the NSE recorded a local participation of 44 per cent, while foreign participation accounted for 56 per cent of activities in the same year. The rally we saw in the market in 2012 was on the back of foreign investments,” the NSE chief said.
He added that the growing return of confidence in the stock market, following the drastic collapse of the stock market in 2008, was responsible for the increased participation of local investors. Onyema also predicted improved growth levels for the exchange.
According to him, “It is also good that our local investors have started to return to the market and we are very hopeful that we will see more of this as the year runs out, we at the Exchange are bullish that the market would pick up further this year.”