| Capital Market |    1721 VIEWS  |
| Capital Market | |
| 1721 VIEWS | |
 |
Wednesday, July 24, 2019 /10:10AM /
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 30 June 2019, total transactions at the nation’s bourse increased
by 34.42% from N221.13 billion (about $713.7 million) in May 2019 to N297.25
billion (about $970.1 million) in June 2019. The performance of the
current month when compared to the performance in the same period (June 2018)
of the prior year revealed that total transactions also increased by 58.29%. In
June 2019, the total value of transactions executed by domestic investors
significantly outperformed transactions executed by foreign investors by 34.00%
as shown in figure 1 below.
A
further analysis of the total transactions executed between the current and
prior month (May 2019) revealed that total domestic transactions increased by
39.36% from N143.87 billion in May to N200.51 billion in June 2019. In
contrast, total foreign transactions also increased by 25.22% from N77.25
billion (about $252.1 million) to N96.74 billion (about $315.7million) between
May and June 2019.#
Analysis of Domestic Transactions
The
value of domestic transactions executed by retail investors significantly outperformed
institutional investors by 54.00% as illustrated in figure 4 below. A
comparison of domestic transactions in the current and prior month (May 2019)
revealed that retail transactions increased by 228.43% from N47.23 billion in
May 2019 to N155.12 billion in June 2019. However, the institutional
composition of the domestic market reduced significantly by 53.04% from N96.64
billion in May 2019 to N45.38 billion in June 2019.
The
data in figure 7 below, highlights the performance of the market over the last
decade. Over a twelve (12) year period, domestic transactions decreased by
66.68% from N3.556t in 2007 to N1.185t in 2018 whilst foreign transactions
increased by 97.88% from N616m to N1.219t over the same period. 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. The actual performance referenced 2019A (2019
Actual) shows that total foreign transactions carried out year till date (YTD)
is about N472.78 billion whilst total domestic transactions YTD is about
N614.67 billion.
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