Nigerian Exchange Records Modest 1.97% Increase in October Transactions

The Nigerian Exchange (NGX) has reported a total transaction value of N502.73 billion (approximately $300.05 million) for domestic and foreign portfolio investments in October 2024.

This represents a modest 1.97% increase from the N493.01 billion ($307.84 million) posted in September 2024.

Despite the Naira’s depreciation from N1,601.52/$1 in September to N1,675.49/$1 in October, which resulted in a lower dollar valuation, the transaction figure still represents the highest monthly performance in the second half of the year.

This also ranks as the third-highest monthly performance in 2024, trailing March (N538.54 billion) and January (N651.52 billion).

Year-to-date data reveals that the exchange has recorded N4.47 trillion ($2.67 billion) in total transactions, the second-highest annual figure over the last 17 years, surpassed only by 2007.

Domestic investors dominated October’s transactions, accounting for N455.27 billion ($272.25 million), which represents 90.56% of total market activity.

The figure marks a slight increase from N451.6 billion ($281.98 million) in September.

On the other hand, foreign portfolio investments (FPI) contributed N47.46 billion ($28.33 million), up from N41.41 billion ($25.86 million) in the prior month, reflecting a 14.61% increase in foreign activity.

Institutional investors drove domestic participation, with transactions surging by 74.45%, from N163.5 billion in September to N285.23 billion ($170.14 million) in October.

Conversely, domestic retail participation dropped sharply by 40.98%, from N288.1 billion ($180 million) to N170.04 billion ($101.42 million) over the same period.

The NGX All-Share Index rose 0.25% in October, pushing the market’s year-to-date gain to an impressive 32%.

The historical trend shows domestic dominance has grown over the years, with foreign transactions declining by 33.28% since 2007, while domestic transactions have seen a smaller decline of 10.94% in the same period.

This highlights the reliance of the Nigerian equities market on local capital for liquidity and resilience.

The significant year-on-year growth, with a 127.54% increase compared to October 2023, demonstrates the market’s potential for growth and development.