Monday,March 01, 2021 / 3:30 PM / By NSE / Header Image Credit: NSE

On a monthly basis, The Nigerian Stock Exchange pollstrading figures from market operators on their Domestic and Foreign PortfolioInvestment (FPI)2 flows. As at 31 January 2021, total transactions at thenation's bourse decreased by 13.66% from N269.24billion (about $687.06million)in December 20203 to N232.46billion (about $590.82million) in January 20214 .

The performance of the current month when compared tothe performance in January 2020 (N235.46billion) revealed that totaltransactions decreased marginally by 1.27%. In January 2021, the total value oftransactions executed by Domestic Investors outperformed transactions executedby Foreign Investors by circa 60% as shown in figure 1 below.

A further analysis of thetotal transactions executed between the current and prior month (December 2020)revealed that total domestic transactions decreased by 7.21% fromN199.32billion in December to N184.94billion in January 2021. Additionally,total foreign transactions decreased by 32.04% from N69.92billion (about$178.44million) to N47.52billion (about $120.78million) between December 2020and January 2021.

Analysis of Domestic Transactions

Figure 4 below shows thatInstitutional Investors outperformed Retail Investors by 28%. A comparison of domestictransactions in the current and prior month (December 2020) revealed thatretail transactions increased by 10.16% from N61.22billion in December 2020 toN67.44billion in January 2021. The institutional composition of the domesticmarket also decreased by 14.91% from N138.09billion in December 2020 toN117.50billion in January 2021.

Historical Analysis OfDomestic And Foreign Transactions

The data in figure 7 belowhighlights 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 toN1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn toN729bn over the same period.

Total domestictransactions accounted for about 74% of the total transactions carried out in2020, whilst foreign transactions accounted for about 26% of the totaltransactions in the same period.

The transaction data for2021 shows that total foreign transactions was circa N47.52billion, whilsttotal domestic transactions was circa N184.94billion. 

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