Market | Capital Market

Domestic and Foreign Portfolio Participation in Equity Trading – May 2022

Jun 23, 2022   •   by   •   Source: NGX   •   eye-icon 606 views

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 May 2022, total transactions at the nation’s bourse increased by 195.05% from N205.88billion (about $494.26million) in April 2022 5 to N607.45billion (about $1.45billion) in May 20226 . The performance of the current month when compared to the performance in May 2021 (N97.19billion) revealed that total transactions increased by 525.01%. In May 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 86% as shown in figure 1 below.

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

A further analysis of the total transactions executed between the current and prior month (April 2022) revealed that total domestic transactions increased by 214.40% from N178.80billion in April to N562.15billion in May 2022. In contrast, total foreign transactions increased by 67.28% from N27.08billion (about $65.01million) to N45.30billion (about $108.02million) between April 2022 and May 2022. 

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 74%. A comparison of domestic transactions in the current and prior month (April 2022) revealed that retail transactions increased by 8.75% from N68.22billion in April 2022 to N74.19billion in May 2022. Similarly, the institutional composition of the domestic market increased by 341.27% from N110.58billion in April 2022 to N487.96billion in May 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 N1.304trillion, whilst total foreign transactions are circa N201.39billion.

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