Domestic and Foreign Portfolio Participation in Equity Trading - February 2014

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April 8, 2014 11.15AM/ 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 February 2014.

 

Table 1: Analysis of Transactions for the Period Ended 28 February 2014

 

Note the Significant increase in FPI outflows in February compared to January and the same period last year. The outflows in February are about 107% higher compared to January 2014 and about 183% compared to February 2013

 

Analysis

 

 

Domestic vs. Foreign 2014

The table above illustrates that FPI transactions which accounted for 49.28% at the beginning of the year, increased significantly to 68.59% at the end of February 2014. In contrast, domestic transactions decreased significantly from50.72% to 31.41% over the same period. However, this represents an overall increase of 9.19% in total transactions, broken down into a 51.98% increase in FPI transactions and a 32.37% decrease in domestic transactions.

 

In comparison to the same period in 2013, there was a significant increase in total FPI by 45.90%, whilst the total domestic transactions reduced by 46.02%. However, the FPI outflows outpaced inflows which were the reverse when compared to the same period in 2013. Overall, there was a 3.71% increase in total transactions in comparison to the same period in 2013.



Note: 1 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). 2 The January 2014 and February 2013 transactions are included for comparison to the February 2014 transactions.



Historical Trends – Foreign vs. Domestic



Note: Information on the retail and institutional components of the total domestic transactions in January is based on data obtained from about 90% of Active Dealing Members of The Exchange.

 

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