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Friday, March 22
2019 / 02:12
PM / NSE
Analysis of Transactions For The Month
(Feb’19)
On a monthly basis, The Nigerian Stock Exchange polls
trading figures from market operators on their Foreign Portfolio Investment
(FPI)2 flows.
As at 28 February 2019, total transactions at the
nation’s bourse increased by 54.06% from N122.08 billion recorded in January
2019 to N188.08 billion (about $613.9 million)3 in February 2019.
The performance of the current month when compared to
the performance of the same period (February 2018) in the prior year revealed
that total transactions reduced by 11.30%.
These total transactions were executed by domestic and
foreign investors, domestic investors are further categorized into retail and
institutional investors.
In February 2019, the total value of transactions
executed by foreign investors outperformed those executed by domestic investors
by 6.00% as shown in figure 1.
Analysis Of Domestic And Foreign
Transactions For The Month (Feb’19)
A further analysis of the transactions executed
between the current and prior month (January 2019) revealed that total foreign
transactions increased by 48.00% from N66.85 billion in January 2019 to N98.94
billion in February 2019.
There was a significant increase in foreign outflows
which increased by 97.80% from N27.81 billion to N55.01 billion and foreign
inflows which increased by 91.24% from N22.97 billion to N43.93 billion between
January and February 2019.
Analysis of Domestic Transactions
The value of the total transactions executed in the
domestic market by institutional investors’ outperformed retail investors by
8.00% as illustrated below.
A comparison of the current and prior month (January
2019) transactions revealed that the total retail transactions increased by
38.26% from N29.66 billion in January 2019 to N41.01 billion in February 2019.
The institutional composition of the domestic market
also increased significantly by 88.15% from N25.58 billion in January 2019 to
N48.13 billion in February 2019.
This indicates a higher participation by institutional
investors’ over their retail counterparts in February 2019.
The foreign and domestic trend shown in figure 7
below, highlights the performance of the market over the last decade. Between
2011 and 2015, foreign transactions consistently outperformed domestic
transactions. However, domestic transactions marginally outperformed foreign
transactions in 2016 and 2017, and remained almost at par in 2018.
Foreign transactions which stood at N1.539t in 2014 declined to N1.219t
in 2018. Over the twelve (12) year period, domestic transactions decreased by
66.68% from N3.556t in 2007 to N1.185t in 2018.
Total foreign transactions accounted for about 51% of the total
transactions carried out in 2018, whilst domestic transactions accounted for
about 49% of the total transactions in the same period.
Related News
1.
Domestic
and Foreign Portfolio Participation in Equity Trading - January 2019
2. Domestic
and Foreign Portfolio Participation in Equity Trading – December 2018
3. Domestic and
Foreign Portfolio Participation in Equity Trading – November 2018
4. Domestic and
Foreign Portfolio Participation in Equity Trading – October 2018
5.
Domestic and
Foreign Portfolio Participation in Equity Trading – September 2018
6. Domestic and
Foreign Portfolio Participation in Equity Trading – August 2018
7.
Domestic and
Foreign Portfolio Participation in Equity Trading – July 2018
8. Domestic and
Foreign Portfolio Participation in Equity Trading – June 2018
9. Domestic and
Foreign Portfolio Participation in Equity Trading – May 2018
10. Domestic and
Foreign Portfolio Participation in Equity Trading – April 2018
11. Domestic and
Foreign Portfolio Participation in Equity Trading – March 2018
12. Domestic and
Foreign Portfolio Participation in Equity Trading – February 2018
13. Domestic and
Foreign Portfolio Participation in Equity Trading – January 2018
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