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Tuesday,
August 04, 2020 / 02:28 PM / By NSE / Header Image Credit: NSE
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 June 2020, total transactions at the nation's
bourse increased by 8.17% from N119.15billion (about $307.32million) in May
2020 5 to N128.88billion (about $333.25million) in June 20206. The performance
of the current month when compared to the performance in June 2019
(N297.25billion) revealed that total transactions decreased by 56.64%. In June
2020, the total value of transactions executed by Domestic Investors
outperformed transactions executed by Foreign Investors by circa 12% as shown
in figure 1 below.
A further analysis of the total transactions executed
between the current and prior month (May 2020) revealed that total domestic
transactions decreased by 13.55% from N83.91billion in May to N72.54 billion in
June 2020. However, total foreign transactions increased by 59.88% from N35.24
billion (about $90.89million) to N56.34 billion (about $145.68million) between
May and June 2020.
Analysis Of Domestic
Transactions
Figure 4 below shows that Institutional Investors
outperformed Retail Investors by 10%. A comparison of domestic transactions in
the current and prior month (May 2020) revealed that retail transactions
decreased by 23.35% from N42.19 billion in May 2020 to N32.34 billion in June
2020. Whilst the institutional composition of the domestic market also
decreased by 3.64% from N41.72 billion in May 2020 to N40.20 billion in June
2020.
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 thirteen (13) year period, domestic
transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst
foreign transactions increased by 53.08% from N616bn to N943bn over the same
period.
Total domestic transactions accounted for about 51% of
the total transactions carried out in 2019, whilst foreign transactions
accounted for about 49% of the total transactions in the same period.
The actual performance referenced 2020A (2020 Actual)
shows that total foreign transactions carried out year till date (YTD) is about
N396.63 billion whilst total domestic transactions YTD is about N606.91
billion.
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