December 17, 2020/NSE
On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 31 October 2020, total transactions at the nation’s bourse increased by 81.45% from N134.97billion (about $349.85million) in September 2020 to N244.90billion (about $634.55million) in October 20206. The performance of the current month when compared to the performance in October 2019 (N163.16billion) revealed that total transactions increased by 50.10%. In October 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 34% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (September 2020) revealed that total domestic transactions increased by 71.91% from N94.92billion in September to N163.18billion in October 2020. Total foreign transactions also increased by 104.04% from N40.05billion (about $103.81million) to N81.72billion (about $211.75million) between September and October 2020.
Analysis Of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 14%. A comparison of domestic transactions in the current and prior month (September 2020) revealed that retail transactions increased by 95.97% from N35.69billion in September 2020 to N69.94billion in October 2020. Whilst the institutional composition of the domestic market increased by 57.42% from N59.23billion in September 2020 to N93.24billion in October 2020.
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 thirteen (13) year period, domestic transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.
Total domestic transactions accounted for about 51% of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49% of the total transactions in the same period.
The actual performance referenced 2020A (2020 Actual) shows that total foreign transactions carried out year till date (YTD) is about N591.97billion whilst total domestic transactions YTD is about N989.10billion.
