Domestic and Foreign Portfolio Participation in Equity Trading - January 2020

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Monday, February 24, 2020    / 03:05 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)2 flows. As at 31 January 2020, total transactions at the nation's bourse increased by 84.03% from N127.94 billion (about $417.41million) in December 20193 to N235.46 billion (about $767.23 million) in January 2020. The performance of the current month when compared to the performance in the same period (January 2019) of the prior year revealed that total transactions increased by 92.87%. In January 2020, the total value of transactions executed by Domestic investors outperformed transactions executed by Foreign investors by approximately 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 (December 2019) revealed that total domestic transactions increased by 154.86% from N64.80 billion in December to N165.14 billion in January 2020. Similarly, total foreign transactions increased by 11.35% from N63.14 billion (about $206million) to N70.32 billion (about $229.42 million) between December and January 2020.


Analysis Of Domestic Transactions

The value of domestic transactions executed by Institutional investors outperformed Retail investors by 2% as illustrated in figure 4 below. A comparison of domestic transactions in the current and prior month (December 2019) revealed that retail transactions increased by 233.75% from N24.47 billion in December 2019 to N81.67 billion in January 2020. Similarly, the institutional composition of the domestic market increased by 107.02% from N40.32 billion in December 2019 to N83.47 billion in January 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 N70.32 billion whilst total domestic transactions YTD is about N165.14 billion.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.


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