Domestic and Foreign Portfolio Participation in Equity Trading - March 2014

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May 8, 2014 12.35AM/ 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 March 2014.


Table 1: Analysis of Transactions for the Period Ended 31 March 2014



Note the significant increase in the FPI transactions from 49.28% to 78.25% between January to March, 2014. On the contrary, domestic transactions decreased from 50.72% to 21.75% in the same period.

 

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 78.25% at the end of March 2014. In contrast, domestic transactions decreased significantly from 50.72% to 21.75% over the same period. However, this represents an overall decrease of 8.31% in total transactions, broken down into a 50.42% increase in FPI transactions and a 60.68% decrease in domestic transactions.

In comparison to the same period in 2013, there was a significant increase in total FPI by 62.90%, whilst the total domestic transactions reduced by 49.43%. However, the FPI outflows outpaced inflows which were the reverse when compared to the same period in 2013. Overall, there was a 9.84% increase in total transactions in comparison to the same period in 2013.




Note:  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).

The February 2014 and March 2013 transactions are included for comparison to the March 2014 transactions.



Historical Trends – Foreign vs. Domestic



Note: Information on the retail and institutional components of the total domestic transactions in March is based on data obtained from about 94% of Active Dealing Members of The Exchange.

 

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6.Foreign Portfolio Participation in Equity Trading At NSE 2007 - March 2013

7.Flow of Foreign Portfolio Investments on the Nigerian Stock Market – January 2013 
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