Domestic and Foreign Portfolio Participation in Equity Trading - April 2021

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Thursday, May 27, 2021 / 04:35 PM / By NGX / Header Image Credit: NGX


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On a monthly basis, Nigerian Exchange Limited ("NGX") polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 30 April 2021, total transactions at the nation's bourse decreased by 30.01% from N228.49billion (about $560.55million) in March 2021 5 to N159.93billion (about $389.84million) in April 20216. The performance of the current month when compared to the performance in April 2020 (N128.67billion) revealed that total transactions increased by 24.29%. In April 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 64% as shown in figure 1 below.

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A further analysis of the total transactions executed between the current and prior month (March 2021) revealed that total domestic transactions decreased by 29.78% from N187.85billion in March to N131.91billion in April 2021. Similarly, total foreign transactions decreased by 31.05% from N40.64billion (about $99.70million) to N28.02billion (about $68.31million) between March 2021 and April 2021.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 44%. A comparison of domestic transactions in the current and prior month (March 2021) revealed that retail transactions decreased by 66.37% from N108.55billion in March 2021 to N36.50billion in April 2021. However, the institutional composition of the domestic market increased by 20.32% from N79.30billion in March 2021 to N95.41billion in April 2021.

 

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Historical Analysis Of Domestic And Foreign Transactions 

The data in figure 7 below highlights the performance of the market over the last decade. Over a fourteen (14) year period, domestic transactions decreased by 59.54% from N3.556t in 2007 to N1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn to N729bn over the same period.

 

Total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.

 

The transaction data for 2021 shows that total foreign transactions stand at circa N178.25billion, whilst total domestic transactions are circa N658.21billion.


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