The total portfolio investments from both domestic and foreign investors on the Nigerian Exchange Limited (NGX) hit N5.587 trillion for the year 2024.
This was revealed in the latest Domestic and Foreign Portfolio Investment report for December 2024. Monthly, NGX polls trading figures from market operators on their Domestic and
The Exchange experienced a significant surge in equity transactions by domestic and foreign portfolio investors in 2024, a 56.2 per cent year-on-year increase reaching N5.59 trillion from N3.58 trillion a year ago.
Domestic investors remained the dominant force in the market, accounting for 84.75 per cent (N4.73 trillion), while foreign investors contributed 15.25 per cent (N852.03 billion).
This marked an improvement in foreign participation compared to 2023 when foreign transactions stood at just 11.48 per cent of total market activity.
The year 2024 began on a strong note in January, with total transactions amounting to N651.52 billion. Domestic investors accounted for 91.85 per cent (N598.41 billion), while foreign investors contributed 8.15 per cent (N53.11 billion).
The equities market performance in 2024 was fuelled by strong corporate earnings, positive sentiment around economic reforms, and increased capital inflows. Investor optimism drove the NGX All-Share Index up by 37.72 per cent for the year and the market capitalisation gained by N21.845 trillion in 2024.
Speaking, Cowry Assets Management Limited said “the market rally was driven by strong domestic institutional participation and improved investor sentiment following increased forex stability at N1,543.9 per dollar.
The issuance of $2.2 billion in Eurobonds helped bolster foreign exchange reserves and contributed to a rise in foreign portfolio investment.”
The research firm said “over the last 18 years, domestic transactions have grown by 33.15 per cent, while foreign transactions have increased by 38.31 per cent.
“Looking ahead, sustained policy reforms, exchange rate stability, and economic growth will be crucial in maintaining this momentum. Enhancing investor confidence, particularly among foreign participants, will be key to fostering a long-term market.”
On market outlook in 2025, Group managing director/chief executive of Nigerian Exchange Group Plc, Temi Popoola said that “we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”
For 2025, vice president of High Cap Securities, David Adonri stated that the positive impact of continuation of banking recapitalisation and other anticipated public offerings will strengthen the primary market.
According to him, the refinancing embarked upon by some manufacturing companies and their recovery from FX losses are expected to facilitate growth further in dividend yield. There will be a positive impact on equities should the 2025 macroeconomic forecast of 15 per cent Inflation rate and Foreign Exchange rate of N1,500 per US Dollar materialise.
He noted that “the enthusiasm of investors in participating in the banking recapitalisation exercise is quite high. The exercise is also supported by a robust public offering technology. With the boom in the secondary market and growing investors’ confidence in Nigeria, there is strong indication that the recapitalisation exercise will be a huge success again in 2025.”