Thursday, April 28, 2022 / 10:45 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)4 flows. As at 31 March 2022, total transactions at the nation's bourse increased by 0.93% from N183.56billion (about $441.61million) in February 2022 5 to N185.26billion (about $445.25million) in March 20226. The performance of the current month when compared to the performance in March 2021 (N228.49billion) revealed that total transactions decreased by 18.92%. In March 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 (February'22) 

A further analysis of the total transactions executed between the current and prior month (February 2022) revealed that total domestic transactions increased by 3.59% from N138.13billion in February to N143.09billion in March 2022. In contrast, total foreign transactions decreased by 7.17% from N45.43billion (about $109.30million) to N42.17billion (about $101.36million) between February 2022 and March 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 (February 2022) revealed that retail transactions decreased by 1.27% from N61.39billion in February 2022 to N60.61billion in March 2022. However, the institutional composition of the domestic market increased by 7.48% from N76.74billion in February 2022 to N82.48billion in March 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 N563.29billion, whilst total foreign transactions are circa N129.01billion.