Domestic and Foreign Portfolio Participation in Equity Trading - October 2013

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December 12, 2013/ NSE

On a monthly basis, the 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 between January and October 2013.

Table 1: Monthly Analysis of Transactions on The Exchange for the Period Ended 31 October 2013



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 table illustrates that the FPI transactions which started at 36.9% at the beginning of the year, increased to 58.34.9% at the end of October 2013 representing an increase of 21.4%.

Domestic transactions on the other hand decreased from 63.1% at the beginning of the year to 41.66% at the end of October representing a reduction of 21.4%.

The graphs in page 2 show the trend between January and October 2013 and illustrate the movements in both the domestic and foreign transactions at The Exchange in 2013.



The analysis on page 3 captures the domestic composition of transactions on The Exchange in October 2013.

Table 2: Analysis of Domestic Transactions on The Exchange (June – October 2013)





Note: The above information on the retail and institutional components of the total domestic transactions in October is based on data obtained from about 72% of Active Dealing Members of The Exchange.

The following analysis captures FPI historical data and trends between 2007 and 2012.


Table 3: Flow of Foreign Portfolio Investments (FPI) on the Nigerian Stock Exchange


Graphical comparisons of the inflows and outflows between 2007 and 2012 are as shown below:





A comparison of the total foreign transactions with domestic transactions between 2007 and 2012 on the Nigerian Stock Exchange is as shown in table 4 below:


Table 4: Comparison of total Foreign transactions with total Domestic transactions



The table shows that total FPI transactions, which accounted for 14.8% of total transactions in 2007 consistently increased over the years to 66.8% in 2011 (An increase of 52% over the 4 year period). However, this dropped to 61.4% in 2012.


Domestic transactions on the other hand peaked at 85.2% in 2007 but dropped significantly to 33.2% of total transactions in 2011 (A sharp reduction of 52% in the 4 year period). This subsequently increased to 38.6% in 2012.


The graphs below show the trend between 2007 and 2012.



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