Tuesday, March23, 2021 / 01:30 PM / By NSE / Header Image Credit: NSE

On a monthly basis, The Nigerian Stock Exchange polls tradingfigures from market operators on their Domestic and Foreign PortfolioInvestment (FPI)4 flows. As at 28 February 2021, total transactions at thenation's bourse decreased by 7.26% from N232.46 billion (about $590.82million)in January 2021 5 to N215.58billion (about $525.21million) in February 20216.The performance of the current month when compared to the performance inFebruary 2020 (N148.50billion) revealed that total transactions increased by45.17%. In February 2021, the total value of transactions executed by DomesticInvestors outperformed transactions executed by Foreign Investors by circa 42%as shown in figure 1 below.

A further analysis of the total transactionsexecuted between the current and prior month (January 2021) revealed that totaldomestic transactions decreased by 16.99% from N184.94billion in January toN153.51billion in February 2021. However, total foreign transactions increasedby 30.62% from N47.52billion (about $120.78million) to N62.07billion (about$151.23million) between January 2021 and February 2021.

Analysis ofDomestic Transactions

Figure 4 below shows that Institutional Investorsoutperformed Retail Investors by 30%. A comparison of domestic transactions inthe current and prior month (January 2021) revealed that retail transactionsdecreased by 20.23% from N67.44billion in January 2021 to N53.80billion inFebruary 2021. The institutional composition of the domestic market alsodecreased by 15.14% from N117.50billion in January 2021 to N99.71billion inFebruary 2021.

Historical Analysis Of Domestic AndForeign Transactions

The data in figure 7 below highlights theperformance of the market over the last decade. Over a fourteen (14) yearperiod, domestic transactions decreased by 59.54% from N3.556t in 2007 toN1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn toN729bn over the same period.

Total domestic transactions accounted for about74% of the total transactions carried out in 2020, whilst foreign transactionsaccounted for about 26% of the total transactions in the same period.

 Thetransaction data for 2021 shows that total foreign transactions was circaN109.59billion, whilst total domestic transactions was circa N338.45billion.

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