Foreign capital inflows into the Nigerian Exchange Limited (NGX) declined to a minimal level of N11. 26 billion in September. The progression relies on information regarding both local and international portfolio investment on the NGX. The document indicates that as foreign influx declined, overseas investors raised the sum they sold off during August and September 2024.

Overseas investments in Nigeria during the initial three quarters of 2024 totaled N310. 99 billion, surpassing the N108. 93 billion registered in the corresponding period of 2023.

According to Punch, the peak inflow amount was documented in May of this year at N54. 87 billion and has progressively decreased to N11. 26 billion by September. Overseas outflow deteriorated to N30. 15 billion in September in contrast to N24. 38 billion in August. Financial analysts have indicated that the fluctuation of the naira and elevated interest rates set by the Central Bank of Nigeria (CBN) are key factors causing investors to turn away from the stock market in pursuit of other options.

Information from the FMDQ Exchange indicates that the naira declined to N1,652. 25 against the dollar on Friday, November 15, 2024. The Monetary Policy Committee of the CBN fixed the nation’s interest rate at 27. 25%.

Based on data from the National Bureau of Statistics, the central bank increased the interest rate in order to address inflation, which rose to 33. 88% in October.

Analysts anticipate additional increases in interest rates following the surge in inflation. Additionally, the NGX report stated that by September 2024, overall transactions on the exchange increased by 29. 90% compared to August, growing from N379. 52 billion to N493. 01 billion.

The present month’s performance indicates that overall transactions increased by 66. 67% in comparison to the corresponding period in 2023. In September 2024, the overall worth of transactions conducted by local investors exceeded that of international investors by 84%.

During the assessment period, individual investors surpassed institutional investors by 28%. A juxtaposition of domestic transactions in the present month prior to August reveals an increase in retail transactions by 59. 42%, escalating from N180. 72 billion in August 2024 to N288. 10 billion in September 2024.