December 26, 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 30 November 2021, total transactions at the nation’s bourse decreased by 7.95% from N213.07billion (about $513.31million) in October 20215 to N196.14billion (about $472.54million) in November 20216 . The performance of the current month when compared to the performance in November 2020 (N317.81billion) revealed that total transactions decreased by 38.28%. In November 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 30% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (October 2021) revealed that total domestic transactions decreased by 25.82% from N170.65billion in October to N126.58billion in November 2021. However, total foreign transactions increased by 63.98% from N42.42billion (about $102.21million) to N69.56billion (about $167.58million) between October 2021 and November 2021.
Analysis of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 28%. A comparison of domestic transactions in the current and prior month (October 2021) revealed that retail transactions decreased by 21.99% from N58.34billion in October 2021 to N45.51billion in November 2021. Similarly, the institutional composition of the domestic market decreased by 27.82% from N112.31billion in October 2021 to N81.07billion in November 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 N399.18billion, whilst total domestic transactions are circa N1.342t.
