By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Total foreign portfolio investment inflow at the Nigerian stock exchange (NSE) went down by -3.49 percent (-3.49%) as it recorded N39.53 billion in January 2014 compared to N40.96 billion in the corresponding period of 2013.

Analysis of transactions for the period ended January 31, 2014 according to the details from the NSE shows that total foreign transactions both inflow and outflow amounts to N89.67 billion; while total domestic transactions is N92.30 billion in the review period.

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 12.21%. However, the FPI outflows outpaced inflows which were the reverse when compared to the same period in 2013. Overall, there was a 9.22% increase in total transactions in comparison to the same period in 2013.

A further review of these transactions analysis for the period 2014 by the NSE shows 49.28% foreign transactions in January 2014 compared to N36.89% in January 2013.

According to the NSE, historical trends of Total FPI transactions, which accounted for 14.8% of total transactions in 2007 consistently increased over the years to 50.8% in 2013 (An increase of 36% over the 6 year period).

‘’Domestic transactions on the other hand started at 85.2% in 2007 but reduced significantly to 49.2% of total transactions in 2013 (A sharp decline of 36% in the 6 year period),’’ the NSE reported.

While the NSE noted the significant shift in FPI which outperformed domestic between 2011 and 2012. ‘’However in 2013, there was a major rebound in the domestic component which led to an almost equal split in foreign vs. domestic transactions,’’ the NSE reported.