The Nigerian Exchange Limited (NGX) has reported a substantial rise in equity trading values, reaching a record-breaking N3.968 trillion in the first nine months of 2024. This impressive figure marks a 46 percent increase compared to the N2.712 trillion traded during the same period in 2023, underscoring the strength of domestic investor participation in Nigeria’s financial markets, Arise TV reports.
According to the NGX’s latest Domestic and Foreign Portfolio Investment (FPI) report, domestic investors dominated trading activity, contributing N3.271 trillion, or 82.44 percent of the total trading volume, while foreign investors accounted for N696.88 billion, making up 17.56 percent. The report also noted that foreign inflows amounted to N310.99 billion, while foreign outflows were higher, reaching N385.89 billion.
The report reveals strong performance among domestic investors, with retail investors leading the charge. Retail investors traded N1.739 trillion worth of stocks, surpassing institutional investors, who contributed N1.531 trillion. The robust participation of retail investors reflects growing confidence in the market and increasing interest from individuals across Nigeria.
In September 2024 alone, total transactions on the NGX surged by nearly 30 percent month-on-month, reaching N493.01 billion ($307.84 million) compared to N379.52 billion ($237.70 million) in August. This surge represented a remarkable 66.67 percent increase year-on-year from September 2023, when transactions totaled N295.80 billion.
A closer analysis of domestic market trends reveals that retail investors played a key role in the market’s growth. In September, retail transactions soared by 59.42 percent, climbing from N180.72 billion in August to N288.10 billion, while institutional transactions rose by a more modest 15.69 percent, from N141.33 billion to N163.50 billion.
The month’s data also highlighted a significant shift in foreign and domestic investor dynamics. Domestic transactions increased by 40.23%, from N322.05 billion in August to N451.60 billion in September. Meanwhile, foreign transactions declined by 27.95%, from N57.47 billion ($35.99 million) in August to N41.41 billion ($25.86 million) in September, as foreign investors adopted a more cautious approach amid global economic uncertainty.
