Domestic and Foreign Portfolio Participation in Equity Trading - May 2014

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June 23rd, 2014 4.15PM/ 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 May 2014.

 

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


Note the significant increase in the domestic transactions from 24.75% in April to 54.44% in May. On the contrary, foreign transactions decreased from 75.25% to 45.56% in the same period.

Analysis

Domestic vs. Foreign 2014

Domestic participation at the nation’s bourse increased to N109.75 billion (about $0.71 billion) in May 2014, up 18.9% from January 2014. Foreign Portfolio Investors (FPI) ceded about 8.88% of trading to domestic investors as foreign transactions decreased marginally from 49.28% to 45.56% over the same period.

Total transactions increased by 10.79% from N181.97 billion in January to N201.61 billion in May and foreign portfolio investors’ inflows accounted for 20.47% of total transactions while the outflows accounted for 25.09% of the total transactions.

In comparison to the same period in 2013, there was no change in total FPI, whilst the total domestic transactions increased by 13.32%. FPI outflows outpaced inflows which were the same when compared to the same period in 2013. Overall, there was a 6.84% 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 January to April 2014 and May 2013 transactions are included for comparison to the May 2014 transactions.


Retail vs. Institutional May 2014


Historical Trends – Foreign vs. Domestic


Note: Information on the retail and institutional components of the total domestic transactions in May is based on data obtained from about 92% of Active Dealing Members of The Exchange.

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