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 December 2022, total transactions at the nation’s bourse increased by 34.80% from N104.38billion (about $234.88million) in November 5 2022 to N140.70billion (about $305.15million) in December 6 2022. The performance of the current month when compared to the performance in December 2021 (N158.26billion) revealed that total transactions decreased by 11.10%. In December 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 78% as shown in figure 1 below

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

A further analysis of the total transactions executed between the current and prior month (November 2022) revealed that total domestic transactions increased significantly by 39.51% from N89.95billion in November to N125.49billion in December 2022. However, total foreign transactions increased by 5.41% from N14.43billion (about $32.47million) to N15.21billion (about $32.99million) between November 2022 and December 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 44%. A comparison of domestic transactions in the current and prior month (November 2022) revealed that retail transactions increased by 32.53% from N26.62billion in November to N35.28billion in December 2022. Similarly, the institutional composition of the domestic market increased by 42.44% from N63.33billion in November 2022 to N90.21billion in December 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 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 2022 shows that total domestic transactions are circa N1.945trillion, whilst total foreign transactions are circa N379.23billion.