June 28, 2021 / 12:51 PM / By NGX / Header Image Credit: NSE
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 31 May 2021, total transactions at the nation's bourse decreased by 39.23% from N159.93billion (about $389.84million) in April 20215 to N97.19billion (about $236.33million) in May 20216. The performance of the current month when compared to the performance in May 2020 (N119.15billion) revealed that total transactions decreased by 18.43%. In May 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (April 2021) revealed that total domestic transactions decreased by 41.70% from N131.91billion in April to N76.90billion in May 2021. Similarly, total foreign transactions decreased by 27.59% from N28.02billion (about $68.31million) to N20.29billion (about $49.33million) between April 2021 and May 2021.
Analysis of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 14%. A comparison of domestic transactions in the current and prior month (April 2021) revealed that retail transactions decreased by 9.75% from N36.50billion in April 2021 to N32.94billion in May 2021. Similarly, the institutional composition of the domestic market decreased by 53.93% from N95.41billion in April 2021 to N43.96billion in May 2021.
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 N198.54billion, whilst total domestic transactions are circa N735.11billion.