August 26, 2019 / 01:00 PM / By NSE / Header Image
On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 30 September 2019, total transactions at the nation's bourse increased by 15.95% from N121.99 billion (about $398.0 million) in August 20195 to N141.45 billion (about $461.50 million) in September 2019. The performance of the current month when compared to the performance in the same period (September 2018) of the prior year revealed that total transactions increased by 8.64%. In September 2019, the total value of transactions executed by foreign investors outperformed transactions executed by domestic investors by 34.00% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (August 2019) revealed that total domestic transactions decreased by 19.91% from N58.69 billion in August to N47.00 billion in September 2019. However, total foreign transactions increased by 47.81% from N63.90 billion (about $208.4million) to N94.45 billion (about $308.2million) between August and September 2019.
Analysis Of Domestic Transactions
The value of domestic transactions
executed by Institutional investors and retail investors were at par as
illustrated in figure 4 below. A comparison of domestic transactions in the
current and prior month (August 2019) revealed that retail transactions decreased
by 2.34% from N23.92 billion in August 2019 to N23.36 billion in September
2019. However, the institutional composition of the domestic market declined
more significantly by 30.81% from N34.17 billion in August 2019 to N23.64
billion in September 2019.
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 twelve (12) year period,
domestic transactions decreased by 66.68% from N3.556t in 2007 to N1.185t in
2018 whilst foreign transactions increased by 97.88% from N616m to N1.219t over
the same period. Total foreign transactions accounted for about 51% of the
total transactions carried out in 2018, whilst domestic transactions accounted
for about 49% of the total transactions in the same period. The actual performance
referenced 2019A (2019 Actual) shows that total foreign transactions carried
out year till date (YTD) is about N688.91 billion whilst total domestic
transactions YTD is about N775.51 billion.