FOREIGN INVESTMENTS IN NIGERIAN STOCK MARKET SURGE BY 204% IN Q2 2024
Highlights:
1. Significant Growth in Foreign Investments: Foreign investments in Nigerian equities reached $150 million in Q2 2024, marking a 204% increase from $49.4 million in Q1 2024.
Year-on-year, the increase is even more substantial, with a 1,660% rise compared to $8.5 million in Q2 2023.
2. Foreign Portfolio Investments (FPI): In Q2 2024, Foreign Portfolio Investments stood at $1.4 billion, down by 32% from the $2.08 billion recorded in Q1 2024.
However, the year-on-year increase in FPI was notable, with a 1,208% rise compared to $107 million in Q2 2023.
3. First Half 2024 Overview: Total foreign portfolio investments in H1 2024 reached $3.48 billion, reflecting a 360% increase from $756.1 million in H1 2023.
The majority of these investments were concentrated in money market instruments, accounting for 77% (or $2.68 billion) of the total FPIs.
4. High-Yield Environment Drives Growth: Investment growth was driven by the attractive yields offered by the Central Bank of Nigeria (CBN), with treasury bills offering up to 22.5% and OMO bills at 22% in H1 2024.
In the second half, OMO bills offered even higher returns of 27.25%, boosting foreign portfolio participation.
5. Bonds and Other Instruments: In H1 2024, bonds attracted $599 million in foreign investments, with the bulk occurring in Q1. This represented a 55% growth from H1 2023.
6. Analysts’ Perspectives: Analysts attributed the surge in investments to the recapitalization exercise in the banking sector and policies introduced by the CBN to attract foreign capital inflows.
This impressive investment growth reflects Nigeria’s high-yield environment and regulatory reforms, making it an attractive destination for foreign investors in 2024.
Highlights:
1. Significant Growth in Foreign Investments: Foreign investments in Nigerian equities reached $150 million in Q2 2024, marking a 204% increase from $49.4 million in Q1 2024.
Year-on-year, the increase is even more substantial, with a 1,660% rise compared to $8.5 million in Q2 2023.
2. Foreign Portfolio Investments (FPI): In Q2 2024, Foreign Portfolio Investments stood at $1.4 billion, down by 32% from the $2.08 billion recorded in Q1 2024.
However, the year-on-year increase in FPI was notable, with a 1,208% rise compared to $107 million in Q2 2023.
3. First Half 2024 Overview: Total foreign portfolio investments in H1 2024 reached $3.48 billion, reflecting a 360% increase from $756.1 million in H1 2023.
The majority of these investments were concentrated in money market instruments, accounting for 77% (or $2.68 billion) of the total FPIs.
4. High-Yield Environment Drives Growth: Investment growth was driven by the attractive yields offered by the Central Bank of Nigeria (CBN), with treasury bills offering up to 22.5% and OMO bills at 22% in H1 2024.
In the second half, OMO bills offered even higher returns of 27.25%, boosting foreign portfolio participation.
5. Bonds and Other Instruments: In H1 2024, bonds attracted $599 million in foreign investments, with the bulk occurring in Q1. This represented a 55% growth from H1 2023.
6. Analysts’ Perspectives: Analysts attributed the surge in investments to the recapitalization exercise in the banking sector and policies introduced by the CBN to attract foreign capital inflows.
This impressive investment growth reflects Nigeria’s high-yield environment and regulatory reforms, making it an attractive destination for foreign investors in 2024.