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Tuesday,
June 23, 2020 / 12:47 PM / 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 May 2020, total transactions at the nation's
bourse decreased by 7.40% from N128.67billion (about $332.22million) in April
2020 5 to N119.15billion (about $307.32million) in May 20206. The performance
of the current month when compared to the performance in May 2019
(N221.13billion) revealed that total transactions decreased by 46.12%. In May 2020,
the total value of transactions executed by Domestic Investors outperformed
transactions executed by Foreign Investors by circa 40% as shown in figure 1
below.
A further analysis of the total transactions executed
between the current and prior month (April 2020) revealed that total domestic
transactions increased by 11.15% from N75.49billion in April to N83.91 billion
in May 2020.However, total foreign transactions decreased by 33.73% from N53.18
billion (about $137.37million) to N35.24 billion (about $90.89million) between
April and May 2020.
Analysis Of Domestic
Transactions
Figure 4 below shows that Retail investors marginally
outperformed Institutional Investors by 0.56%. A comparison of domestic
transactions in the current and prior month (April 2020) revealed that retail
transactions increased by 4.38% from N40.42 billion in April 2020 to N42.19
billion in May 2020. Similarly, the institutional composition of the domestic
market increased by 18.96% from N35.07 billion in April 2020 to N41.72 billion
in May 2020.
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 2020A (2020 Actual)
shows that total foreign transactions carried out year till date (YTD) is about
N340.29 billion whilst total domestic transactions YTD is about N534.37
billion.
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