Domestic and Foreign Portfolio Participation in Equity Trading - August 2021

Proshare

Friday, September 24, 2021 / 10:21 AM / By NGX / Header Image Credit: NGX

Proshare Nigeria Pvt. Ltd.

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 August 2021, total transactions at the nation's bourse decreased marginally by 0.39% from N89.77billion (about $218.20million) in July 20215 to N89.42billion (about $217.53million) in August 20216. The performance of the current month when compared to the performance in August 2020 (N94.45billion) revealed that total transactions decreased by 5.33%. In August 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 44% as shown in figure 1 below.

Proshare Nigeria Pvt. Ltd.


A further analysis of the total transactions executed between the current and prior month (July 2021) revealed that total domestic transactions decreased by 13.71% from N74.24billion in July to N64.06billion in August 2021. However, total foreign transactions increased by 63.30% from N15.53billion (about $37.75million) to N25.36billion (about $61.69million) between July 2021 and August 2021.

 

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 0.44%. A comparison of domestic transactions in the current and prior month (July 2021) revealed that retail transactions decreased by 15.16% from N37.59billion in July 2021 to N31.89billion in August 2021. Similarly, the institutional composition of the domestic market decreased by 12.22% from N36.65billion in July 2021 to N32.17billion in August 2021.

 

Proshare Nigeria Pvt. Ltd. 

 

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 N262.85billion, whilst total domestic transactions are circa N950.76billion.

 

Proshare Nigeria Pvt. Ltd. 

 

Related News

  1. Domestic and Foreign Portfolio Participation in Equity Trading - July 2021
  2. Domestic and Foreign Portfolio Participation in Equity Trading - June 2021
  3. Domestic and Foreign Portfolio Participation in Equity Trading - May 2021
  4. Domestic and Foreign Portfolio Participation in Equity Trading - April 2021
  5. Domestic and Foreign Portfolio Participation in Equity Trading - March 2021
  6. Domestic and Foreign Portfolio Participation in Equity Trading - February 2021
  7. Domestic and Foreign Portfolio Participation in Equity Trading - January 2021
  8. Domestic and Foreign Investment Report: Activity Level Down in December 2020
  9. Domestic and Foreign Portfolio Participation in Equity Trading - November 2020
  10. Domestic and Foreign Portfolio Participation in Equity Trading - October 2020
  11. Domestic and Foreign Portfolio Participation in Equity Trading - September 2020

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP