By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) has reported N318.55 billion Foreign Portfolio Investment (FPI) inflow from January 2012 to September 2012.

This is contained in are recent Report by the NSE “New Methodology for Calculating Foreign Portfolio Participation in Equity Trading at the NSE”.

The Exchange also reported N252.24 billion outflow making it a total of FPI Flow of N570.8 billion From January 2012 up till September 2012.

The Nigeria’s Exchange affirmed that a comparison of Total Foreign Flows (TFF) with Stock Market Transactions shows that Transactions on its Bourse has hit N954.1 billion from January to September 2012.

The Report shows that FPI accounted for 59.8 percent (59.8%) of the N954.1 billion transactions on the Exchange; while Domestic Investors accounts for 40.2% in the review period.

From the Report, FPI flow which stood at 15% in 2007 consistently increased over the years to stand at 67% in 2011. However, between January and August 2012, we observed that domestic investors have increased their share of the market from 33.2% in 2011 to 37.3% in 2012. Domestic investors can be categorised into either Institutional or Retail Investors.

“In January 2012, the exchange reported that foreign investors accounted for 81% of total inflows (purchases) on the market during 2011. During the same year, foreign investors accounted for 53% of total outflows (sales) recorded on the market. Consequently, total transactions by foreign investors were N847.9 billion or 67% out of total transaction of N1.3 trillion” the Report said.

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