NGX transactions drop 12% to N422bn – Report

The Nigerian Exchange recorded a decline in total transactions in November 2024, dropping by 12.01 per cent to N442.34bn compared to N502.73bn in October 2024.

This was disclosed in the Domestic & Foreign Portfolio Investment Report of Nigerian Exchange Limited on Friday.

According to the report, domestic transactions contributed N401.40bn in November, representing an 11.83 per cent decrease from the N455.27bn recorded in October. Foreign transactions also fell by 13.74 per cent, declining from N47.46bn in October to N40.94bn in November.

Retail investors saw increased participation, with transactions rising by 14.90 per cent from N170.04bn in October to N195.38bn in November.

In contrast, institutional transactions experienced a decline, dropping by 27.77 per cent from N285.23bn in October to N206.02bn in November. This divergence highlights the varying levels of engagement within the domestic market.

From a year-to-date perspective, total transactions between January and November 2024 amounted to N4.913tn. Domestic investors accounted for most of these transactions at N4.128tn, while foreign investors contributed N785.28bn.

The same period in 2023 recorded total transactions of N3.234tn, comprising N2.871tn from domestic investors and N362.75bn from foreign investors.

Despite the monthly decline, November 2024 transactions marked a 47.12 per cent increase compared to N300.67bn recorded in November 2023. Domestic investors continued to dominate the market, outperforming foreign investors by approximately 82 per cent during the month.

Over a 17-year period, total domestic transactions decreased by 10.94 per cent from N3.556tn in 2007 to N3.167tn in 2023. Similarly, foreign transactions saw a decline of 33.28 per cent, falling from N616bn to N411bn during the same period.

“Over 17 years, domestic transactions decreased by 10.94 per cent  from N3.556tn in 2007 to N3.167tn in 2023; whilst foreign transactions also decreased by 33.28 per cent from N616bn to N411bn over the same period.”

The PUNCH reported that domestic transactions on the Nigerian Exchange reached N3.73tn year-to-date in October, accounting for 83.35 per cent of total market activity.