| Capital Market |    1191 VIEWS  |
| Capital Market | |
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Friday,
January 24, 2020 / 09:25 AM / By NSE / Header
Image Credit: NSE
On a monthly basis, The Nigerian Stock Exchange polls
trading figures from market operators on their Domestic and Foreign Portfolio
Investment (FPI)4 flows. As at 31 December 2019, total transactions at the
nation's bourse decreased by 25.84% from N172.52 billion (about $562.89million)
in November 2019 to N127.94 billion (about $417.41 million) in December 2019.
The performance of the current month when compared to the performance in the
same period (December 2018) of the prior year revealed that total transactions
increased by 1.65%. In December 2019, the total value of transactions executed
by Domestic investors outperformed transactions executed by Foreign investors
marginally by 2% as shown in figure 1 below.
A further analysis of the total
transactions executed between the current and prior month (November 2019)
revealed that total domestic transactions decreased by 24.44% from N85.76 billion
in November to N64.80 billion in December 2019. Similarly, total foreign
transactions decreased by 27.22% from N86.76 billion (about $283.1million) to
N63.14 billion (about $206 million) between November and December 2019.
Analysis Of Domestic Transactions
The value of domestic transactions
executed by Institutional investors outperformed Retail investors by 24% as
illustrated in figure 4 below. A comparison of domestic transactions in the
current and prior month (November 2019) revealed that retail transactions
decreased by 24.03% from N32.21 billion in November 2019 to N24.47 billion in
December 2019. Similarly, the institutional composition of the domestic market
decreased by 24.71% from N53.55 billion in November 2019 to N40.32 billion in
December 2019.
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 thirteen (13) year
period, domestic transactions decreased by 72.30% from N3.556t in 2007 to
N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to
N943bn over the same period.
Total domestic transactions accounted for
about 51% of the total transactions carried out in 2019, whilst foreign
transactions accounted for about 49% of the total transactions in the same
period.
The actual performance referenced 2019A (2019 Actual) shows that total foreign transactions carried out year till date (YTD) is about N942.55 billion whilst total domestic transactions YTD is about N985.53 billion.
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