Nigeria Stock Market Collapses As FPI Fell 51.57% In Two Months | Independent Newspapers Limited
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Nigeria Stock Market Collapses As FPI Fell 51.57% In Two Months

Posted: Mar 29, 2016 at 2:25 pm   /   by   /   comments (0)

Isuma Mark, Abuja
As the economy continues to slip away from remediation, figures release by the Nigeria Stock Exchange (NSE) covering equity transactions for months of January and February saw a rapid shedding of 51.57% in foreign portfolio investors (FPI).
A vintage analyses of the transaction figures showed total transactions on the bourse increasing from N84.10bn in N117.27bn, while FPI fell 51.57% to 36.48%.
With lack of substantial local participation in the NSE in addition to weak domestic companies with low assets, FPI forms a very substantial part of NSE.
The low activities recorded in the past ten months crescendoing the hazards unleashed by FPI in the last two months alone, financial analyst are quick to point to government’s lack of doing business and giving direction to the economy.
The NSE posited that monthly foreign outflows outpaced inflows, which was consistent with later part of 2015.
The report said, “Foreign outflows increased by 20.79% from N26.36bn in January 2016 to N31.84bn while foreign inflows decreased by 35.68% from N17.01bn in January 2016 to N10.94bn in February 2016.”
The nation’s bourse transaction according to the NSE showed that while there was an increased by 39.44% from N84.10bn recorded in January 2016 to N117.27bn in February 2016, the performance was a decrease of 36.44% compared with the N184.49 recorded in February 2015.
Although local participants in NSE is increasing, those are inadequate to claw back huge losses being recorded on regular basis as FPI mounts decreasing challenge.