According to the NGX, in a report titled ‘Domestic & Foreign Portfolio Investment’, the N311.41bn worth of portfolio investments liquidated in the first half of the year compared starkly with the N73.06bn in foreign outflows recorded in the same period in 2023.

The report stated that foreign investments witnessed a surge, with inflows reaching N540.48bn, a 272.55 per cent increase from N145.08bn in 2023. Foreign outflows also increased, from N72.02bn in 2023 to N229.07bn in 2024

Speaking with our correspondent, a financial analyst, Olaid Baanu, highlighted the sharp increase in foreign capital inflows to N229.07bn in the first half of the year, up from N72.02bn in the same period in the previous year, stating that this initially indicated growing interest from foreign investors and bolstered market confidence.

However, the substantial liquidation value suggests a profit-taking sentiment among foreign investors. Baanu, a seasoned investment banker, explained, “While the increased inflows are encouraging, the high liquidation indicates that foreign investors are cashing out their profits, which could destabilise the market.”

He added that the depreciation of the naira in the NAFEM market by N598.19 (65.7 per cent) per United States dollar in the first half of the year further complicated the situation.

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