January 24, 2020/NSE
On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 31 December 2019, total transactions at the nation’s bourse decreased by 25.84% from N172.52 billion (about $562.89million) in November 2019 to N127.94 billion (about $417.41 million) in December 2019. The performance of the current month when compared to the performance in the same period (December 2018) of the prior year revealed that total transactions increased by 1.65%. In December 2019, the total value of transactions executed by Domestic investors outperformed transactions executed by Foreign investors marginally by 2% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (November 2019) revealed that total domestic transactions decreased by 24.44% from N85.76 billion in November to N64.80 billion in December 2019. Similarly, total foreign transactions decreased by 27.22% from N86.76 billion (about $283.1million) to N63.14 billion (about $206 million) between November and December 2019.
Analysis Of Domestic Transactions
The value of domestic transactions executed by Institutional investors outperformed Retail investors by 24% as illustrated in figure 4 below. A comparison of domestic transactions in the current and prior month (November 2019) revealed that retail transactions decreased by 24.03% from N32.21 billion in November 2019 to N24.47 billion in December 2019. Similarly, the institutional composition of the domestic market decreased by 24.71% from N53.55 billion in November 2019 to N40.32 billion in December 2019.
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 thirteen (13) year period, domestic transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.
Total domestic transactions accounted for about 51% of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49% of the total transactions in the same period.
The actual performance referenced 2019A (2019 Actual) shows that total foreign transactions carried out year till date (YTD) is about N942.55 billion whilst total domestic transactions YTD is about N985.53 billion.