Local investors drive N2.7trn equity deals in 4 months

In four months to April, stocks worth N2.714 trillion were exchanged on the Nigerian Bourse. When compared with the N1.894 trillion equity deal recorded in the same period of 2024, the 2025 transactions represent a 43 percent jump over the period.

In the review of the four-month period, local investors accounted for N1.83 trillion or 67.68 percent of the total value of stocks traded on the NGX, leaving the rest for foreign counterparts.

In January 2025, Nigeria recorded N607.05 billion equities deals, which declined to N509.47 billion in February. In March, the deals’ value rose to N1.115 trillion, falling again to N482.04 billion in April.

In January 2025, foreign investors traded N715.1 billion stocks, while domestic investors exchanged stocks worth N535.54 billion.

In February, equity deals’ value stood at N426.5 billion for foreign investors and N466.82 billion for domestic investors. In March 2025, equities’ deals by foreigners were estimated at N699.89 billion, with local investors chalking up N415.62 billion.

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In April 2025, stock transactions worth N630.7 billion were done by foreigners while the local investors traded only N418.97 billion stocks.

“Retail activity may support mid and small-cap stocks temporarily, but institutional follow-through will be limited due to potential participation at the upcoming bond auction,” according to United Capital research analysts in their May 26 note.

They believe that this week’s investors may portray selective interest in defensive transactions, rotating into consumer staples, telcos and banks with solid outlooks.

“Overall, the outlook for the week is neutral to mildly bullish, with macroeconomic stability and corporate performance remaining key drivers,” United Capital analysts added.

Foreign investors took N456.80 billion from the stock market while they brought in N420.32billion.

In the same period in 2024, these foreign investors in-flowed N135.95billion into stocks and moved N198.06 billion from the market.

According to recently released data on domestic and foreign portfolio participation in equity trading, foreign investors’ equities deals were estimated at N877.12 billion or 32.32 percent.

The transaction in April 2025 when compared to the performance in April 2024 (N346.23 billion) revealed that total transactions increased by 39.22 percent. In April 2025, the total value of transactions executed by domestic Investors outperformed transactions executed by foreign investors by 74 percent.

A further look at the total transactions between April and prior month (March 2025) show that total domestic transactions increased by 0.81 percent, from N415.62 billion in March 2025 to N418.97 billion in April 2025.

Total foreign transactions decreased significantly by 90.99 percent from N699.89 billion (about $455.41 million) to N63.07 billion (about $39.50 million) between March 2025 and April 2025. The sharp decline was primarily linked to the absence of the block trades that had substantially boosted foreign transaction figures in March 2025.

Lately, the market has seen a mixed of bargains and sell pressure particularly in oil and gas and banking stocks. Ahead of the week which opened positively, Furtureview analysts anticipate a mixed performance in the equities market, “with a modest bullish bias supported by anticipated buying activity.”

“Investor positioning is likely to be influenced by the upcoming FGN Bond auction, while demand for undervalued stocks is expected to provide additional market support,” they said.