Monday, February 28, 2022 / 09:48 AM / By NGX / Header Image Credit: NGX

On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)2 flows. As at 31 January 2022, total transactions at the nation's bourse increased by 104.33% from N158.26billion (about $363.81million) in December 20213 to N323.38billion (about $777.32million) in January 20224. The performance of the current month when compared to the performance in January 2021 (N232.46billion) revealed that total transactions increased by 39.11%. In January 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 74% as shown in figure 1 below.

Analysis of Domestic and Foreign Transactions For The Month (January'22)

A further analysis of the total transactions executed between the current and prior month (December 2021) revealed that total domestic transactions increased by 129.44% from N122.94billion in December to N282.07billion in January 2022. Similarly, total foreign transactions increased by 16.96% from N35.32billion (about $81.20million) to N41.31billion (about $99.30million) between December 2021 and January 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 32%. A comparison of domestic transactions in the current and prior month (December 2021) revealed that retail transactions Increased by 153.21% from N37.74billion in December 2021 to N95.56billion in January 2022. However, the institutional composition of the domestic market increased by 118.91% from N85.20billion in December 2021 to N186.51billion in January 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 N282.07billion, whilst total foreign transactions are circa N41.31billion.