August 3, 2021/NGX
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 30 June 2021, total transactions at the nation’s bourse increased by 3.68% from N97.19billion (about $236.33million) in May 20215 to N100.77billion (about $244.88million) in June 20216 . The performance of the current month when compared to the performance in June 2020 (N128.88billion) revealed that total transactions decreased by 21.81%. In June 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 54% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (May 2021) revealed that total domestic transactions increased by 0.59% from N76.90billion in May to N77.35billion in June 2021. Similarly, total foreign transactions increased by 15.43% from N20.29billion (about $49.33million) to N23.42billion (about $56.91million) between May 2021 and June 2021.
Analysis of Domestic Transactions
Figure 4 below shows that Institutional Investors outperformed Retail Investors by 6%. A comparison of domestic transactions in the current and prior month (May 2021) revealed that retail transactions increased by 9.47% from N32.94billion in May 2021 to N36.06billion in June 2021. However, the institutional composition of the domestic market decreased by 6.07% from N43.96billion in May 2021 to N41.29billion in June 2021.
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 fourteen (14) year period, domestic transactions decreased by 59.54% from N3.556t in 2007 to N1.439t in 2020 whilst foreign transactions increased by 18.45% from N616bn to N729bn over the same period.
Total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.
The transaction data for 2021 shows that total foreign transactions are circa N221.96billion, whilst total domestic transactions are circa N812.46billion.