Domestic and Foreign Portfolio Participation in Equity Trading - March 2021

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Tuesday, April 27, 2021 / 01:08 PM / By NGX / Header Image Credit: NGX

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On a monthly basis, Nigerian Exchange Limited ("NGX") polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 31 March 2021, total transactions at the nation's bourse increased by 5.99% from N215.58billion (about $525.21million) in February 20215 to N228.49billion (about $560.55million) in March 20216 . The performance of the current month when compared to the performance in March 2020 (N242.91billion) revealed that total transactions decreased by 5.94%. In March 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 64% as shown in figure 1 below.

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A further analysis of the total transactions executed between the current and prior month (February 2021) revealed that total domestic transactions increased by 22.37% from N153.51billion in February to N187.85billion in March 2021. However, total foreign transactions decreased by 34.53% from N62.07billion (about $151.23million) to N40.64billion (about $99.70million) between February 2021 and March 2021.

 

Analysis of Domestic Transactions

Figure 4 below shows that Retail Investors outperformed Institutional Investors by 16%. A comparison of domestic transactions in the current and prior month (February 2021) revealed that retail transactions increased by 101.77% from N53.80billion in February 2021 to N108.55billion in March 2021. However, the institutional composition of the domestic market decreased by 20.47% from N99.71billion in February 2021 to N79.30billion in March 2021.

 

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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 fourteen (14) year period, domestic transactions decreased by 59.54% from N3.556t in 2007 to N1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn to N729bn over the same period. Total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period. The transaction data for 2021 shows that total foreign transactions was circa N150.23billion, whilst total domestic transactions was circa N526.30billion.

 

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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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