November 22, 2021/NGX
On a monthly basis, Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 31 October 2021, total transactions at the nation’s bourse increased by 80.34% from N118.15billion (about $285.81million) in September 20215 to N213.07billion (about $513.31million) in October 2021. The performance of the current month when compared to the performance in October 2020 (N244.90billion) revealed that total transactions decreased by 13%. In October 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 60% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (September 2021) revealed that total domestic transactions increased by 81.93% from N93.80billion in September to N170.65billion in October 2021. Similarly, total foreign transactions increased by 74.21% from N24.35billion (about $58.91million) to N42.42billion (about $102.21million) between September 2021 and October 2021.
Analysis of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 32%. A comparison of domestic transactions in the current and prior month (September 2021) revealed that retail transactions increased by 83.69% from N31.76billion in September 2021 to N58.34billion in October 2021. Similarly, the institutional composition of the domestic market increased by 81.03% from N62.04billion in September 2021 to N112.31billion in October 2021.
Historical Analysis of Domestic and Foreign Transactions
The data in figure 7 below highlights the performance of the market over the last decade. Over a fourteen (14) year period, domestic transactions decreased by 59.54% from N3.556t in 2007 to N1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn to N729bn over the same period.
Total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.
The transaction data for 2021 shows that total foreign transactions are circa N329.62billion, whilst total domestic transactions are circa N1.215t.
