The stock market recorded N20.19 billion net foreign investment outflow in January indicating risk of liquidity crunch in the market.
Vanguard’s analysis from the data released by the Nigerian Exchange Limited, NGX showed that foreign outflow in January 2025 recorded N45.85 billion against the foreign inflow, which stood at N25.66 billion.
Also, foreign inflow into the stock market decreased marginally by 2.3% in January 2025 from N26.26 billion in December 2024.
However,the foreign outflow increased by 13.2% to N45.85 billion in January 2025 from N40.49.billion in December 2024.
Also, on Year on Year, YoY, the foreign outflow outperformed the foreign inflow by 190.6 % as foreign outflow recorded N45.85 billion in January 2025, while foreign inflow stood at N15.78 billion in January 2024.
This development threatens efforts to stabilise the Naira and enhance accretion to the external reserves as foreign investors would be selling the local currency to get dollar to repatriate to other countries where investment is favourable .
The NGX data further show that as at 31 January 2025, total transactions at the nation’s bourse decreased by 9.89% from N673.66 billion (about $438.64 million) in December 2024 to N607.05 billion (about $410.84 million) in January 2025. The performance of January 2025 when compared to the performance in January 2024 revealed that total transactions decreased by 6.83%. In January 2025, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 76%.
A further analysis of the total transactions executed between January 2025 and December 2024 revealed that total domestic transactions decreased by 11.71% from N606.91 billion in December 2024 to N535.54 billion in January 2025. However, total foreign transactions increased by 7.13% from N66.75 billion (about $43.47 million) to N71.51 billion (about $48.38 million) between December 2024 and January 2025.
Analysis of domestic transactions shows that Institutional Investors outperformed Retail Investors marginally by 0.16%. A comparison of domestic transactions in January 2025 and December 2024 revealed that retail transactions increased by 33.10% from N200.87 billion in December 2024 to N267.35 billion in January 2025.
However, the institutional composition of the domestic market decreased by 33.95% from N406.04 billion in December 2024 to N268.19 billion in January 2025.
