Repricing of Yields Reduces Activity Level in January 2021


Tuesday, March 02, 2021   /12:40 PM / by CSL Research / Header Image Credit: CSL Research

 Proshare Nigeria Pvt. Ltd.

Based on the data released by the NSE on Domestic & Foreign Portfolio Investments for January 2021, total value fell 13.7% m/m to N232.5bn (US$590.8m) from N269.2bn (US$687.1m) in December 2020. Furthermore, total value declined 1.27% y/y to N232.5bn (US$590.8m) in January 2021 from N235.5bn (US$600.8M) in January 2020. Activity level among domestic investors decreased 7.2% m/m to N184.9bn (US$470.0m) while foreign investor transactions also took a dip, down 32.0% m/m to N47.52bn (US$120.78m). Domestic investors still retained dominance of trading activities on the local bourse as their share of total transactions in January stood at 79.6%.


Related Link: Domestic and Foreign Portfolio Participation in Equity Trading - January 2021

On the domestic front, transactions were dominated by institutional investors who traded N117.5bn (US$298.6m) while retail investors executed transactions worth N67.4bn (US$171.4m). Notably, the volume of transactions declined 14.9% m/m at the institutional level contrary to an increase of 10.16% m/m at the retail level. For foreign investors, outflows fell to N30.8bn (US$78.3m) compared with N48.8bn (US$124.5m) in December. In the same vein, foreign inflows decreased to N16.7bn (US$42.5m) in January from N21.1bn (US$53.9m) in December, resulting in a net outflow of N14.1bn (US35.7m) compared with a net outflow of N27.6 (US$70.5m) in December.


Looking ahead, for as long as yields in the fixed income space continue to rise, the equities market will continue to take a hit in our view. In the near term, we believe good corporate earnings and dividend announcements will support some stocks in the equities market. We, however, expect FPIs to retain apathy towards the Nigerian market in the short term, though the inability to source FX for repatriation may continue to force reinvestments.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News

1.      NSE Launches e-Filing Portal, X-Filing, to Enhance Securities Listing

2.     Domestic and Foreign Portfolio Participation in Equity Trading - January 2021

3.     Executive Chairman, FIRS Honoured with NSE Digital Closing Gong Ceremony

4.     NCM 2020: Technology and the Nigerian Capital Market

5.     How The Nigerian Capital Market Can Support MSME Financing

6.     NCM 2020: Treasury Bills Fell to a Record Lows in 2020

7.     NCM 2020: Top Ten Moments in the Nigerian Capital Market in 2020

8.     NCM 2020: NASD USI Closed Green in 8 Out of 12 Months in 2020

9.     Nigeria's Growth Board Idles as Equities Struggle to Pick up Steam

10.  NCM 2020: Extracts of Financials of Quoted companies - DANGCEM Tops on Revenue and PAT


 Proshare Nigeria Pvt. Ltd.

Related News