May 30, 2024/NGX
On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. As at 30 April 2024, total transactions at the nation’s bourse decreased by 35.71% from N538.54bn (about US$404.69m) in March 2024 to N346.23bn (about US$260.24m) in April 2024. The performance of the current month, when compared to the performance in April 2023 (N191.21bn), revealed that total transactions increased significantly by 81.07%. In April 2024, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 30%, as shown below.
Further analysis of the total transactions executed between the current and prior month (March 2024) revealed that total domestic transactions decreased by 49.27% from N444.28bn in March to N225.40bn in April 2024. However, total foreign transactions increased by 28.19% from N94.26bn (about US$70.83m) to N120.83bn (about US$90.83m) between March 2024 and April 2024.
Analysis Of Domestic Transactions
Institutional Investors outperformed Retail Investors by 10%. A comparison of domestic transactions in the current and prior month of March 2024 revealed that retail transactions decreased by 54.89% from N223.37bn in March to N100.77bn in April 2024. Similarly, the institutional composition of the domestic market decreased by 43.58% from N220.91bn in March 2024 to N124.63bn in April 2024.
Historical Analysis of Domestic and Foreign Transactions
The chart below highlights the performance of the market over the last decade. Over a sixteen (16) year period, domestic transactions decreased by 10.94% from N3.556trn in 2007 to N3.167trn in 2023, whilst foreign transactions also decreased by 33.28% from N616bn to N411bn over the same period.
Total domestic transactions accounted for about 89% of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11% of the total transactions in the same period.
The transaction data for 2024 shows that total domestic transactions are circa N1.560trn, whilst total foreign transactions are circa N334.01bn.
