In the latest released NSE Domestic & Foreign Portfolio Investment for October, total value traded surged in line with expectations as value grew 81.5% m/m to N244.9bn (US$634.6m) in October 2020 from N135bn (US$350.6m) in September 2020. Activity level among domestic investors grew 71.9% m/m to N163.18bn (US$422.8m) while foreign investor transactions surged 104.0% m/m to N81.7bn (US$211.7m). Domestic investors still retained dominance of trading activities on the local bourse as their share of total transactions in October stood at 66.6% (YTD; 62.56%) while foreign investors' share of total transactions was 33.4% (YTD; 37.4%).
On the domestic front, transactions were dominated by institutional investors who traded N93.2bn (US$241.6m) while retail investors executed transactions worth N69.9bn (US$181.2m). We note that volume of transactions among retail and institutional investors grew 96.0% and 57.4% respectively. Foreign outflows rose to N56.4bn (US$146.2m) in October compared with N26.1bn (US$67.8m) in September. In the same vein, foreign Inflows increased to N25.3bn (US$65.5m) in October from N14.0bn (US$36.4m) in September, resulting in a net outflow of N31.1bn (US$80.7m) in October compared with a net outflow of N12.1n (US$31.4m) in September.
A contribution of high liquidity due to a dearth of alternative investment opportunities considering negative real interest rates on fixed income securities and positive Q3 results led to the surge in activity level which supported a strong bullish performance in the local bourse in October resulting in the highest monthly gain since 2018. The benchmark All Share Index gained for the sixth consecutive month, up higher by 14.0%. Going forward, we expect the domestic investors to continue to dominate activities in the domestic bourse as foreign investors remain cautious.