The Nigerian Exchange Limited (NGX) has reported a substantial increase in domestic transactions, with the total value surging to N3.167 trillion in December 2023, a significant rise from N410.62 billion in the same period of 2022.
NGX’s domestic and foreign portfolio investment report for December 2023 revealed that the total value of domestic transactions outperformed foreign investors’ transactions by an impressive N2.756 trillion or 671.26 per cent.
This remarkable upswing in domestic transactions was primarily attributed to low sentiments among foreign investors, primarily due to the looming 2023 election and other economic challenges. It’s a well-known market trend for investor sentiment to wane during election periods, leading to reduced market exposure as uncertainties surrounding the political landscape prevail.
By the end of December 31, 2023, total transactions at the Nigerian bourse had escalated by 14.38 per cent from N300.67 billion in November 2023 to N343.90 billion in December 2023, signaling a positive trajectory in market activities.
Notably, the NGX’s All-Share Index experienced a substantial growth of 45.90 per cent in 2023, indicating a buoyant market performance throughout the year.
The momentum has continued into 2024, with the country’s stock exchange demonstrating robust performance, as evidenced by the All-Share Index surpassing the 100,000 mark in the early part of the year. This significant milestone underscores the resilience and potential of the Nigerian stock market amidst evolving economic dynamics.
The surge in domestic transactions at NGX not only showcases the increasing participation of local investors but also reflects the evolving landscape of Nigeria’s financial markets, presenting lucrative opportunities for both domestic and international investors.
