Domestic and Foreign Portfolio Participation in Equity Trading - September 2020

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Wednesday, October 21, 2020 / 12:42 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 September 2020, total transactions at the nation's bourse increased by 42.90% from N94.45billion (about $244.27million) in August 20205 to N134.97billion (about $349.85million) in September 2020 6. The performance of the current month when compared to the performance in September 2019 (N141.45billion) revealed that total transactions decreased by 4.58%. In September 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.

 

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A further analysis of the total transactions executed between the current and prior month (August 2020) revealed that total domestic transactions increased by 71.12% from N55.47billion in August to N94.92billion in September 2020. Total foreign transactions also increased by 2.74% from N38.98billion (about $100.81million) to N40.05billion (about $103.81million) between August and September 2020.

 

Analysis Of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 24%. A comparison of domestic transactions in the current and prior month (August 2020) revealed that retail transactions increased by 34.12% from N26.61billion in August 2020 to N35.69billion in September 2020. Whilst the institutional composition of the domestic market increased by 105.23% from N28.86billion in August 2020 to N59.23billion in September 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 N510.25billion whilst total domestic transactions YTD is about N825.94billion.

 

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