LunagisthubForeign Investors Pull Out N576 Billion from Nigerian Stocks: What’s Behind the Trend
The Nigerian Exchange has witnessed a significant sell-off of equities by foreign investors, totaling N576.09 billion between January and June 2025. This represents an 84.97% increase from the same period in 2024, with economists attributing the surge in outflows to global market inconsistencies caused by US President Donald Trump’s policies and high yields in T-bills.
Total Foreign Transactions:N1.14 trillion in the first half of 2025, more than double the N540.48 billion recorded in H1 2024
Net Negative Foreign Portfolio Position*: N16.84 billion over the six months, resulting from outflows exceeding foreign inflows of N559.25 billion
Domestic Investors’ Contribution:N3.06 trillion worth of trades, representing 72.92% of total market transactions, with a 41.5% increase from N2.17 trillion in the same period of 2024
Institutional vs. Retail Investors:Institutional investors contributed N1.59 trillion, while retail investors traded N1.47 trillion, indicating balanced domestic participation
Market Trends and Insights:
Volatile Investor Behavior:Large fluctuations in both foreign and domestic trades, with total transactions reaching N4.19 trillion, up 60.98% from N2.60 trillion recorded in H1 2024
Foreign Investment Pattern:Indicates sensitivity to foreign exchange liquidity and policy clarity, with some investors perceiving Nigerian equity instruments as overpriced due to the market’s 40% gain without substantial changes in the economy’s fundamentals
Institutional Build-up:Gradual increase in institutional trades, rising to N170.54 billion in February and N364.71 billion in June, compared to retail participation.
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