NGX transactions plunge 49.95% to N908.4bn

cover, Financial Markets

Transactions on the Nigerian Exchange Limited plunged 49.95 per cent in August 2025, falling to N908.38bn compared to N1.815tn recorded in July.

The latest domestic and foreign portfolio investment report from the NGX showed that the sharp decline was primarily due to the absence of block trades, which had significantly boosted transaction volumes in July.

A further breakdown revealed that domestic transactions fell 55.87 per cent to N736.57bn in August from N1.6691tn in July. Retail participation dropped 33.46 per cent from N516.50bn in July to N343.67bn in August, while institutional investors recorded a much steeper decline of 65.91 per cent, sliding from N1.1526tn to N392.90bn.

Despite the slump in domestic participation, foreign investors increased their activity during the period. Total foreign transactions rose 17.72 per cent, climbing from N145.95bn in July to N171.81bn in August. This was driven by higher inflows, which stood at N95.14bn, compared to an outflow of N76.67bn.

Overall, domestic investors still dominated the market, accounting for 81.09 per cent of the total value of transactions, while foreign investors contributed 18.91 per cent. The report showed that domestic trades outperformed foreign trades by about 62 per cent in the month under review.

Year-to-date (January to August 2025), total transactions stood at N6.916tn, almost double the N3.475tn recorded in the corresponding period of 2024. Out of this, domestic transactions accounted for N5.463tn, while foreign investors contributed N1.453tn.

In comparison with the same month last year, the NGX reported that total market transactions surged 139.35 per cent, from N379.52bn in August 2024 to N908.38bn in August 2025.

A longer-term review of market data highlighted that over an 18-year period, domestic transactions increased 33.15 per cent, from N3.556tn in 2007 to N4.735tn in 2024, while foreign transactions grew 38.31 per cent from N616bn to N852bn over the same period.

The report also noted that in 2024, domestic transactions accounted for about 85 per cent of total activity, while foreign trades made up 15 per cent. In 2025 so far, the balance remains in favour of domestic investors despite their sharp pullback in August.