Stocks worth N1.969trillion were traded on the Nigerian Exchange Limited (NGX) in nine months to September 31, 2022 compared to N1.331trillion in the corresponding nine months period in 2021.

In January 2022, stocks worth N323.38billion were traded on the Exchange, February (N183.56billion), March (N185.26billion), April (N205.88billion), May (N607.45billion), June (N156.52billion), July (N101.18billion), August (N123.97billion), and September (N81.90billion).

Domestic investors have remained king on the Nigerian Bourse looking at the record value of trades they accounted for.

For instance, in the review nine months period to September, stocks worth N1.648trillion were traded by domestic investors, representing 83.70percent of the total value traded in the review period as against N1.044 trillion (78.43percent) in the corresponding nine months period in 2021. Foreign investors accounted for N321.04billion (16.30percent) as against N287.20 billion (21.57 percent) in nine months to September 2021.

The Nigerian Exchange Limited (NGX) polls on a monthly basis, trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.

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Foreign inflow into the Nigerian stock market in the review nine months period was N160.05billion while foreign outflow was N160.99billion, compared to foreign inflow of N135.39billion and outflow of N151.81billion in nine months to September 2021.

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Domestic retail investors traded stocks worth N 556.78billion in the review nine months to September 2022 while domestic institutional investors were responsible for equities deals worth N1.091.28trillion in the same period under review, a remarkable increase from N436.53billion and N608.03billion respectively recorded by both domestic investors in nine months to September 2021.

As at September 30, total transactions at the nation’s bourse decreased by 33.94percent from N123.97billion (about $289.04million) in August 2022 to N81.90billion (about $187.09million) in September 2022.

The performance of the review month when compared to the performance in September 2021 (N118.15billion) revealed that total transactions decreased by 30.68percent. In September 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 52percent.

A further analysis of the total transactions executed between the current and prior month (August 2022) revealed that total domestic transactions decreased significantly by 35.01percent from N95.76billion in August to N62.23billion in September 2022.

Similarly, total foreign transactions decreased by 30.27percent from N28.21billion (about $65.77million) to N19.67billion (about $44.93million) between August 2022 and September 2022. Retail Investors outperformed Institutional Investors by 10percent.

A comparison of domestic transactions in the review month and prior month (August 2022) revealed that retail transactions decreased by 14.14percent from N39.81billion in August to N34.18billion in September 2022. Similarly, the institutional composition of the domestic market decreased by 49.87percent from N55.95billion in August 2022 to N28.05billion in September 2022.

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By Iheanyi Nwachukwu • October 25, 2022

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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