Domestic and Foreign Portfolio Participation in Equity Trading - November 2020

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Wednesday, December 30, 2020 / 01:36 PM / By NSE / Header Image Credit: NSE


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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 November 2020, total transactions at the nation's bourse increased by 29.77% from N244.90billion (about $634.55million) in October 20205 to N317.81billion (about $813.87million) in November 20206. The performance of the current month when compared to the performance in November 2019 (N172.52billion) revealed that total transactions increased by 84.22%. In November 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58% as shown in figure 1 below.

 

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A further analysis of the total transactions executed between the current and prior month (October 2020) revealed that total domestic transactions increased by 53.51% from N163.18billion in October to N250.50billion in November 2020. Total foreign transactions, however, decreased by 17.63% from N81.72billion (about $211.75million) to N67.31billion (about $172.38million) between October and November 2020.

 

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 16%. A comparison of domestic transactions in the current and prior month (October 2020) revealed that retail transactions increased by 52.10% from N69.94billion in October 2020 to N106.38billion in November 2020. Whilst the institutional composition of the domestic market increased by 54.57% from N93.24billion in October 2020 to N144.12billion in November 2020.

 

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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 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 N659.28billion, whilst total domestic transactions YTD is about N1239.62billion.

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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