Business Low Returns - Foreign Investors Pull Out N410bn From Nigeria Stock Market

Temitope

Temitope Akinola
Not less than N410 billion worth of investment has been withdrawn by foreign investors from the equities segment of the Nigerian Stock Market.

This is due to the dwindling attractions and low returns in the stock market. Data obtained from the NSE revealed that the same thing occurred last year when foreign investment exceeded outflow.

In 2014, foreign investors pulled out N846.53bn from the stock market whereby only N692.39bn were invested into the market. The development caused the NSE All-Share Index to close with a negative return of -16.14 per cent.

Foreign investment in the Nigerian Stock Market accounts for 57.52 percent of the total transactions in 2014.

The foreign investment inflow for the first eight months of 2015 was N367.10bn, which was N43.39bn less than the outflow.

Despite the reported exit of many foreign investors from the stock market, the market is still dominated by foreign investment, accounting for 54.36 per cent of the N1.430tn transactions in equities as of August.

On why domestic investors have not taken full advantage of the low stock prices, the Managing Director, Cowry Asset Management Limited, Mr. Johnson Chukwu, explained that the domestic investors in the market were majorly Pension Fund Administrators, with private investors lacking access to credit.

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Source: Punch
 

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