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 August 2022, total transactions at the nation’s bourse increased by 22.52% from N101.18billion (about $236.86million) in July 2022 5 to N123.97billion (about $289.04million) in August 20226. The performance of the current month when compared to the performance in August 2021 (N89.42billion) revealed that total transactions increased by 38.64%. In August 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 54% as shown in figure 1 below.

Analysis of Domestic and Foreign Transactions For The Month (August ’22)

A further analysis of the total transactions executed between the current and prior month (July 2022) revealed that total domestic transactions increased significantly by 33.93% from N71.50billion in July to N95.76billion in August 2022. However, total foreign transactions decreased by 4.95% from N29.68billion (about $69.47million) to N28.21billion (about $65.77million) between July 2022 and August 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 16%. A comparison of domestic transactions in the current and prior month (July 2022) revealed that retail transactions increased by 29.89% from N30.65billion in July to N39.81billion in August 2022. Similarly, the institutional composition of the domestic market increased by 36.94% from N40.85billion in July 2022 to N55.95billion in August 2022.

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 fifteen (15) year period, domestic transactions decreased by 58.80% from N3.556t in 2007 to N1.465t in 2021 whilst foreign transactions also decreased by 29.38% from N616bn to N435bn over the same period. 

Total domestic transactions accounted for about 77% of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23% of the total transactions in the same period. 

The transaction data for 2022 shows that total domestic transactions are circa N1.586trillion, whilst total foreign transactions are circa N301.37billion.