Domestic and Foreign Portfolio Participation in Equity Trading - September 2021

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Tuesday, October 26, 2021 / 2:45 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 30 September 2021, total transactions at the nation's bourse increased by 32.13% from N89.42billion (about $217.53million) in August 20215 to N118.15billion (about $285.81million) in September 20216. The performance of the current month when compared to the performance in September 2020 (N134.97billion) revealed that total transactions decreased by 12.46%. In September 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58% as shown in figure 1 below.

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A further analysis of the total transactions executed between the current and prior month (August 2021) revealed that total domestic transactions increased by 46.43% from N64.06billion in August to N93.80billion in September 2021. However, total foreign transactions decreased by 3.98% from N25.36billion (about $61.69million) to N24.35billion (about $58.91million) between August 2021 and September 2021.


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Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 32%. A comparison of domestic transactions in the current and prior month (August 2021) revealed that retail transactions decreased by 0.41% from N31.89billion in August 2021 to N31.76billion in September 2021. However, the institutional composition of the domestic market increased by 92.85% from N32.17billion in August 2021 to N62.04billion in September 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 are circa N287.20billion, whilst total domestic transactions are circa N1.045t.

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