Monday,November 22, 2021 / 09:24 AM / By NGX / Header Image Credit: NGX 

On a monthlybasis, Nigerian Exchange Limited ("NGX") polls trading figures from marketoperators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. Asat 31 October 2021, total transactions at the nation's bourse increased by80.34% from N118.15billion (about $285.81million) in September 20215 toN213.07billion (about $513.31million) in October 2021. The performance of thecurrent month when compared to the performance in October 2020 (N244.90billion)revealed that total transactions decreased by 13%. In October 2021, the totalvalue of transactions executed by Domestic Investors outperformed transactionsexecuted by Foreign Investors by circa 60% as shown in figure 1 below.

A further analysis of the total transactions executedbetween the current and prior month (September 2021) revealed that totaldomestic transactions increased by 81.93% from N93.80billion in September toN170.65billion in October 2021. Similarly, total foreign transactions increasedby 74.21% from N24.35billion (about $58.91million) to N42.42billion (about$102.21million) between September 2021 and October 2021.

Analysis of DomesticTransactions

Figure 4 below shows that Institutional Investorsoutperformed Retail Investors by 32%. A comparison of domestic transactions inthe current and prior month (September 2021) revealed that retail transactionsincreased by 83.69% from N31.76billion in September 2021 to N58.34billion inOctober 2021. Similarly, the institutional composition of the domestic marketincreased by 81.03% from N62.04billion in September 2021 to N112.31billion inOctober 2021.

Historical Analysis ofDomestic and Foreign Transactions

The data in figure 7 below highlights the performanceof the market over the last decade. Over a fourteen (14) year period, domestictransactions decreased by 59.54% from N3.556t in 2007 to N1.439t in 2020 whilstforeign transactions increased by 18.45% from N616bn to N729bn over the sameperiod.

Total domestic transactions accounted for about 74% ofthe total transactions carried out in 2020, whilst foreign transactionsaccounted for about 26% of the total transactions in the same period.

The transaction data for 2021 shows that total foreigntransactions are circa N329.62billion, whilst total domestic transactions arecirca N1.215t.

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