Domestic investors pull out N248.94bn from Nigeria’s capital market

At the end of the first quarter in 2021, the capital market recorded more domestic participation than foreign, as investors from both side of the divide withdrew N339.06 billion during the period under review.

The Nigerian bourse had recorded an increase in transactions which moved from N215.58 billion in February 2021 to N228.49 billion in March. This represents an increase of 5.99 percent, but when compared to the N242.91 billion of March 2020, it was down by 5.94 percent.

How domestic, foreign investors pull out funds

In the first three months, local investors had pulled out N248.94 billion from the market, while their foreign counterparts took N90.12 billion out of their Nigerian bourse after cashing in on their investment.

Domestic investors had took out N86.35bn in January; N69.28 billion in February, and N93.31bn in March. This is more than the N30.79 billion in January; N39.05 billion in February, and N20.28 billion in March which foreign investors withdrew.

Accounting for about 74 percent of the total transactions carried out in 2020, domestic investors dominated the capital market in 2020, leaving 26 percent to foreign portfolio investors.

The Nigerian Exchange Limited, in a statement, said, “Retail investors outperformed institutional investors by 16 per cent. A comparison of domestic transactions in the current and prior month (February 2021) revealed that retail transactions increased by 101.77 per cent from N53.80bn in February 2021 to N108.55bn in March 2021.

“However, the institutional composition of the domestic market decreased by 20.47 per cent from N99.71bn in February 2021 to N79.30bn in March 2021.”