Foreign investors have pulled N101.2 billion ($583.6 million) from the NSE in October as they sold stocks valued at that amount after a drop in oil price and the value of the naira. However, the total foreign inflow during the month stood at N52.06, which showed that there were more outflows than inflows
The Nigeria Stock Exchange (NSE) has experienced sharp decline in market capitalisation due to foreign investors exit from the market in apprehension of the impact of the decline in price of crude oil on the naira exchange rate.
Analysis of transactions for the period by the NSE showed that total foreign transactions stood at N153.28 billion as against N21.82 billion by Nigerian investors, while the total transactions during the period stood at N175.10 billion.
It would be recalled that in October, the equity market has its greatest depreciation for the year so far with market capitalization losing N1.17 trillion to close at N12.437 trillion from an opening value of N13.607 trillion. On the other hand, the ASI closed October at 37,550.24 points against 41,210.10 points, losing 8.88 per cent.
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