Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets

Foreign inflows down 31% q/q in Q2 2019    

CSL Stockbrokers by CSL Stockbrokers
September 9, 2019
in Markets, Op-Eds, Politics, Research Analysis
foreign investment, Here’s the easiest way to invest in your future, Uncertainty strengthened as foreign portfolio investors pull out funds, Foreign Investors demand For Nigerian stocks increase to N38.98 billion
Share on FacebookShare on TwitterShare on Linkedin

Capital Importation into Nigeria resumed its decline with a steep drop in the inflow of funds in Foreign Portfolio Investments (FPIs). Data released by the statistics bureau (NBS) showed that total capital inflows into Nigeria declined by 31% to US$5.82 billion in Q2-2019 from US$8.45 billion in Q1-2019. FPIs was the worst hit with a 40% q/q decline, led by a 44% q/q decline in inflows to the bonds market as well as a 41% q/q fall in inflows to the money market. Consequently, inflows into the banking sector – which facilitates fixed income and money market trades- dropped by 34% q/q.

Despite the decline in money market inflows, it still accounted for the bulk of the inflows in the quarter- constituting c.60% of total inflows. Inflows into the equities market also reduced by 24% q/q to US$0.5 billion in Q2 2019 from US$0.67 billion in Q1-2019. On a half year basis, foreign inflows are up 20% y/y in H1-2019 driven by a c.52% y/y increase in inflows to the money market. Inflows to the bonds market are also up by c.20% y/y while inflow into the equities market is lower by c.34% y/y.

[READ ALSO: A guide to how Mutual Funds work in Nigeria]

RelatedPosts

Twitter ban lift: Experts point to Nigerian government as the biggest loser

Foreign investors demand for Nigerian stocks increases to N38.98 billion

 

Foreign Direct Investment (FDI) continues to be crimped by the lack of clarity on policies affecting businesses amidst rising insecurity across the country. In the second quarter, FDI inflow to the country fell by c.8% y/y and declined by c.21% y/y on a half-year basis. While inflows to the agriculture and construction sectors were up by 36% q/q and 548% q/q respectively, inflows to the manufacturing sector fell 57% q/q. Of the total inflows in the period, 92% went into services industries including the banking sector (33%), financing (28%) and for the purchase of shares (19%). The fact that investment in these sectors are quite liquid lends credence to our view that capital imported in the period was more transient than fixed.

News continues after this ad


In the short-term, we expect FDIs to remain moderated as security challenges persist while the sluggish pace of reforms in the ease of doing business will continue to constrain activities in the real sectors of the economy. Portfolio investments – that supported the surge of capital importations in Q1 19 – is likely to improve in the coming months as global uncertainties which had initially reduced investors’ appetite for risky assets in EMs improve. Therefore, we anticipate capital importation to increase slightly in end-2019 and early 2020.

[READ ALSO: MTN Nigeria’s reign short-lived as Dangote Cement reclaims top position on NSE]

Related

Tags: Foreign Direct Investment FDIForeign Portfolio Investment FPIOn the Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Bank managers cause of bank failures in Nigeria – NDIC
    • Japa: Jobs in UK paying between $20k and $125k per annum in August
    • DEAL: Nigerian fintech startup, TeamApt raises over $50 million to expand into new markets

    Follow us on social media:

    Recent News

    NDIC deploys SCV to safeguard microfinance banks’ customers from bank failure

    Bank managers cause of bank failures in Nigeria – NDIC

    August 11, 2022
    Japa: Jobs in UK paying between $20k and $125k per annum in August

    Japa: Jobs in UK paying between $20k and $125k per annum in August

    August 11, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com