Foreign investors are reducing their purchase of shares of Nigerian companies, data from the Nigerian Stock Exchange (NSE) shows. Foreign investor purchase of Nigerian shares peaked in June 2014 with a total of N68.78 billion spent on shares. However, foreign investor purchase was just N32.68 billion in July 2014, which is about 50% less than the June purchases.
Oscar Onyema-CEO, Nigerian Stock Exchange
Sales of shares by foreign investors of their holdings of Nigerian stocks, however also slipped within the period from N49.22 billion to N23.74 billion.
The trend may mean foreign investors have adopted a generally cautious approach to how they trade the market or are holding onto their positions until they get a profitable exit appoint. Year to date gain for the Nigerian stock market is just one percent, well below the 47% gain the market made in 2013.
Total transactions by foreign investors in the Nigerian stock market in the first half of 2014 stood at N761.57 billion representing 55% of total transactions in the market. Domestic investors on the other hand managed total transactions of N621.68 billion representing 44.94% of transactions in the market.
