By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE) – Domestic investors significantly outperformed foreign investors by 27.04 percent, according to the latest analysis of domestic and foreign portfolio participation in equity trading on the Nigerian Stock Exchange (NSE) as at the end of February 2016.
“Domestic transactions increased from 48.43 percent in January 2016 to 63.52 percent in February 2016 while Foreign Portfolio Investment (FPI) transactions decreased from 51.57 percent to 36.48 percent over the same period,” the NSE report affirmed.
Highlights of the domestic composition of transactions on domestic bourse between January and February 2016, shows that the total domestic transaction increased by 82.89 percent from January to February 2016.
The institutional composition of the domestic market increased by 75.05 percent from N21.85 billion in January to N38.25 billion in February whilst the retail composition increased by 91.95 percent from N18.88 billion in January to N36.24 billion in February 2016. This indicates that institutional investors slightly outperformed their retail counterparts in the period under review.
According to the NSE, total transactions at the nation’s bourse increased by 39.44 percent from N84.10 billion recorded in January 2016 to N117.27 billion (about $0.60 billion) in February 2016. In comparison to the same period in 2015, total transactions decreased by 36.44 percent from the N184.49 recorded in February 2015.
The report added that monthly foreign outflows outpaced inflows which were consistent with the same period in 2015. Foreign outflows increased by 20.79 percent from N26.36 billion in January 2016 to N31.84 billion while foreign inflows decreased by 35.68 percent from N17.01 billion in January 2016 to N10.94 billion in February 2016.
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).
Click here to view NSE Domestic and FPI Report February 2016
