Portfolio Investments in the Nigerian Stock Market dropped by 29% or N770 billion according to date from the Stock Exchange. Total portfolio investments in the country was N1.9 trillion during the year compared to N2.6 trillion in 2014. The data also reveals transactions involving Foreign Portfolio Investments (FPI) declined by 33% or N513 billion for the year. Domestic FPI fell 22.5% or N256 billion when compared to 2014. Total outflow was N554 billion compared to an inflow of N470 billion.
The data also reveals that the institutional composition of the domestic market which was about 47.17% in November increased to 67.86% at the end of December, whilst the retail composition decreased from 52.83% to 32.14% in the same period. In comparison to December 2014, institutional composition decreased from 72.99% to 67.86%, whilst the retail composition increased from 27.01% to 32.14% in the same period.
The Nigerian stock market lost about 17.9% of its value in 2015 and has already lost 22% in the first 20 days of January 2016. Investors over the past few days have been dumping Nigerian stocks in panic response to the Central Bank’s refusal to devalue the Naira.