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 October 2022, total transactions at the nation’s bourse increased by 34.42% from N81.90billion (about $248.50million) in September5 2022 to N110.09billion (about $64.45million) in October6 2022. The performance of the current month when compared to the performance in October 2021 (N213.07billion) revealed that total transactions decreased by 48.33%. In October 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 48% as shown in figure 1 below.

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

 A further analysis of the total transactions executed between the current and prior month (September 2022) revealed that total domestic transactions increased significantly by 31.03% from N62.23billion in September to N81.54billion in October 2022. Similarly, total foreign transactions increased by 45.14% from N19.67billion (about $44.93million) to N28.55billion (about $64.45million) between September 2022 and October 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 42%. A comparison of domestic transactions in the current and prior month (September 2022) revealed that retail transactions decreased by 29.64% from N34.18billion in September to N24.05billion in October 2022. However, the institutional composition of the domestic market increased by 104.96% from N28.05billion in September 2022 to N57.49billion in October 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 N1.729trillion, whilst total foreign transactions are circa N349.59billion.