Domestic and Foreign Portfolio Participation in Equity Trading – September 2014

Proshare

November 10th, 2014 11.20 AM / NSE

 

On a monthly basis, The Nigerian Stock Exchange polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI). The table below shows an analysis of transactions on The Exchange at the end of August 2014.

  

Table 1: Analysis of Transactions for the Period Ended 30 September 2014

Note the significant increase in total transactions to N522.74b in September.

 

Analysis

Domestic vs. Foreign 2014

Total equity transactions at the nation’s bourse increased to N522.74 billion (about $3.37 billion) in September representing an increase of 187.27% from the beginning of the year.

Foreign Portfolio Investments (FPI) increased by 152.79% from N89.67 billion in January to N226.68 billion in September 2014 while Domestic participation increased by 220.76% from N92.30 billion in January to N296.06 billion in September 2014. Foreign Investors ceded about 13.28% of trading to Domestic Investors as Foreign Portfolio transactions decreased from 49.28 to 43.36% over the same period.

Foreign portfolio investors’ inflows accounted for 25.66% of total transactions while the outflows accounted for 17.70% of the total transactions.

In comparison to the same period in 2013, there was an increase in total FPI by 319.62%, whilst the total domestic transactions also increased by 446.54%. Overall, there was a 383.17% increase in total transactions in comparison to the same period in 2013.

 

Methodology - The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (Equities only).

 



Retail vs. Institutional September 2014


Note the significant shift in FPI which outperformed domestic between 2011 and 2012. However in 2013, there was a major rebound in the domestic component which led to an almost equal split in foreign vs. domestic transactions

 

 

Historical Trends – Foreign vs. Domestic

 



Information on the retail and institutional components of the total domestic transactions in September is based on data obtained from about 93% of Active Dealing Members of The Exchange.

 

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