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Net Foreign Outflows from NSE Hit N136.7bn in 6 Months

NSE

Foreign Investors pulled funds from the Nigerian Stock Exchange (NSE) to the tune of N136.7 billion in the first six months of 2020, a faster pace than in 2019.

This compares with a net foreign outflow of N42.8 billion in the same period of 2019, according to data from the bourse.

Total foreign outflows from the NSE between January and June 2020 was N266.68 billion, compared to foreign inflows of N129.95 billion.

Foreign fund managers have largely pulled back from the Nigerian market as a result of the difficulty in accessing foreign exchange and devaluation risk.

The Central Bank of Nigeria (CBN) devalued the currency this year from N306 per dollar to N380 per dollar.

Nigerian stocks have trimmed losses this year to -6.12 percent.

Domestic investors have stepped in to become drivers of the NSE with the pullback by foreign funds.

In June 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 12 percent.

Total foreign transactions carried out year till date (YTD) is about N396.63 billion whilst total domestic transactions YTD is about N606.91 billion.

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