On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. As at 31 July 2023, total transactions at the nation’s bourse increased by 72.83% from N406.75billion (about $537.87million) in June 2023 to N702.98billion (about $911.91million) in July 2023. The performance of the current month when compared to the performance in July 2022 (N101.18billion) revealed that total transactions increased by 594.78%. In July 2023, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 88% as shown in figure 1 below.
Analysis of Domestic and Foreign Transactions For The Month (Jul ’23)
A further analysis of the total transactions executed between the current and prior month (June 2023) revealed that total domestic transactions increased by 83.50% from N361.01billion in June to N662.44billion in July 2023. However, total foreign transactions decreased marginally by 11.37% from N45.74billion (about $60.49million) to N40.54billion (about $52.58million) between June 2023 and July 2023
Analysis of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 30%. A comparison of domestic transactions in the current and prior month (June 2023) revealed that retail transactions increased by 84.67% from N124.52billion in June to N229.95billion in July 2023. Similarly, the institutional composition of the domestic market increased by 82.88% from N236.49billion in June 2023 to N432.49billion in July 2023.
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 sixteen (16) year period, domestic transactions decreased by 45.30% from N3.556t in 2007 to N1.945t in 2022 whilst foreign transactions also decreased by 38.47% from N616bn to N379bn over the same period.
Total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period.
The transaction data for 2023 shows that total domestic transactions are circa N1.968trillion, whilst total foreign transactions are circa N185.62billion.
