In the first quarter of 2024, domestic investors demonstrated remarkable resilience in the Nigerian stock market, pouring a substantial sum of N1.335 trillion into equities, marking an impressive 86.23% surge compared to the same period last year.
Despite the backdrop of soaring inflation and currency fluctuations in the foreign exchange market, domestic portfolio investors remained steadfast, emerging as pivotal players in both Domestic and Foreign Portfolio Investment activities.
The latest March 2024 report on Domestic and Foreign Portfolio Investment, compiled by NGX Regulation Limited, unveils these robust figures, drawing from trading data provided by market operators.
This surge in domestic investment comes amidst a total market transaction volume of N1.548 trillion for the first quarter, significantly eclipsing the N530.23 billion recorded in the corresponding period of 2023.
Notably, domestic transactions accounted for a lion’s share of this activity, surpassing foreign transactions by a wide margin.
A deeper dive into the domestic investment landscape reveals a balanced participation between retail and institutional investors. Retail investors injected N670.89 billion into the market, while institutional investors contributed N663.87 billion during Q1 2024.
Analysts attribute the subdued foreign investor activity to various factors, including the lingering foreign exchange backlog. However, they commend the burgeoning local investor participation, emphasizing its positive impact on the market.
The dominance of domestic investors not only underscores confidence and stability but also marks a significant departure from the market’s previous volatility, often fueled by foreign investor activities.
In essence, the substantial influx of domestic investment signals a renewed vigor and credibility within the local bourse, ushering in a phase of stability and optimism for the Nigerian stock market.
