Domestic and Foreign Portfolio Participation in Equity Trading - August 2014

Proshare

October 13th, 2014 1.50 PM / NSE

On a monthly basis, The Nigerian Stock Exchange polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI). The table below shows an analysis of transactions on The Exchange at the end of August 2014.



Note the significant increase in FPI transactions from 25.17% in July to 81.43% in August. On the contrary, domestic transactions decreased from 74.83% to 18.57% in the same period.

Analysis

 


Domestic vs. Foreign 2014
FPI transactions at the nation’s bourse which recorded its lowest flows for the year in July increased significantly to N110.4 billion (about $0.71 billion) in August 2014, up 95.68% from July 2014. Domestic investors conceded about 62.86% of trading to foreign investors as Domestic transactions decreased significantly from 74.83% to 18.57% while FPI transactions increased from 25.17% to 81.43% over the same period.

Total transactions decreased by 25.49% from N181.97 billion in January to N135.58 billion in August and foreign portfolio investors’ inflows accounted for 39.73% of total transactions while the outflows accounted for 41.70% of the total transactions in August 2014.

In comparison to the same period in 2013, total FPI increased by 55.76%, whilst the total domestic transactions decreased by 61.11%. FPI outflows outpaced inflows which was consistent with the same period in 2013. Overall, there was a 0.04% decrease in total transactions in comparison to the same period in 2013.

Methodology - The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (Equities only).


The January to July 2014 and August 2013 transactions are included for comparison to the August 2014 transactions.






Note the significant shift in FPI which outperformed domestic between 2011 and 2012. However in 2013, there was a major rebound in the domestic component which led to an almost equal split in foreign vs. domestic transactions.

 


Information on the retail and institutional components of the total domestic transactions in August is based on data obtained from about 95% of Active Dealing Members of The Exchange.

Related Stories

 

1.Domestic and Foreign Portfolio Participation in Equity Trading – July 2014

2.Domestic and Foreign Portfolio Participation in Equity Trading - June 2014

3.Domestic and Foreign Portfolio Participation in Equity Trading - May 2014

4.Domestic and Foreign Portfolio Participation in Equity Trading – April 2014

5.Domestic and Foreign Portfolio Participation in Equity Trading – March 2014

6.Domestic and Foreign Portfolio Participation in Equity Trading - February 2014

7.Domestic and Foreign Portfolio Participation in Equity Trading - January 2014

8.Domestic and Foreign Portfolio Participation in Equity Trading - December 2013
9.
Domestic and Foreign Portfolio Participation in Equity Trading - November 2013
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Domestic and Foreign Portfolio Participation in Equity Trading - October 2013

11.Foreign Portfolio Participation in Equity Trading At NSE 2007 - March 2013
12.
Flow of Foreign Portfolio Investments on the Nigerian Stock Market – January 2013 
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Foreign Portfolio Participation in Equity Trading at NSE: 2007 – February 2013 
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NSE - Flow of Foreign Portfolio Investments – 2012

  

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