Domestic and Foreign Portfolio Participation in Equity Trading - April 2019

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Tuesday, May 28, 2019   /06:04PM / NSE

 

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On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Foreign Portfolio Investment (FPI)4 flows. As at 30 April 2019, total transactions at the nation’s bourse increased by 35.24% from N110.10 billion (about $359.3 million) 5 recorded in March 2019 to N148.91 billion (about $485.9 million) in April 2019. The performance of the current month when compared to the performance in the same period (April 2018) of the prior year revealed that total transactions reduced by 29.83%. In April 2019, the total value of transactions executed by foreign investors outperformed those executed by domestic investors by 4.00% as shown in figure 1 below.


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A further analysis of the total transactions executed between the current and prior month (March 2019) revealed that total foreign transactions increased by 37.13% from N56.09 billion in March 2019 to N76.92 billion in April 2019. Total foreign outflows also increased by 38.34% from N30.20 billion to N41.78 billion whilst foreign inflows increased by 35.76% from N25.89 billion to N35.15 billion between March and April 2019.


Analysis of Domestic Transactions

The value of the domestic transactions executed by institutional investors’ outperformed retail investors by 18.00% as illustrated in figure 4 below. A comparison of domestic transactions in the current and prior month (March 2019) revealed that retail transactions increased marginally by 6.6% from N27.44 billion in March 2019 to N29.26 billion in April 2019. However the institutional composition of the domestic market increased more significantly by 60.75% from N26.58 billion in March 2019 to N42.73 billion in April 2019.


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The data in figure 7 below, highlights the performance of the market over the last decade. Foreign transactions which stood at N1.539t in 2014 declined to N1.219t in 2018. Over the twelve (12) year period, domestic transactions decreased by 66.68% from N3.556t in 2007 to N1.185t in 2018. 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 the total foreign transactions carried out year till date (YTD) is about N298.79 billion whilst the total domestic transactions YTD is about N270.37 billion.


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

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