• Saturday, June 22, 2024
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Retail investors outperform institutional counterparts

Retail-markets

Retail investors marginally outperformed their institutional counterparts by 3.22%, as domestic investors at the Nigerian Stock Exchange (NSE) outperformed their foreign counterparts by 21.90%.

The total domestic transactions increased by 63.75% from April to May 2016. The institutional composition of the domestic market increased by 71.71% from N17.85billion in April to N30.65billion in May while the retail composition increased by 56.94% from N20.83billion in April to N32.69billion in May 2016.

On a monthly basis, the Nigerian Stock Exchange polls trading figures from major custodians and market operators on their foreign portfolio investment (FPI) flows.

Foreign Portfolio Investment (FPI) transactions increased by 43.49%, from N28.28 billion in April to N40.58 billion in May 2016, while domestic investors recorded an increase of 63.75% from N38.68billion in April to N63.34 billion in May 2016.

The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (equities only).

Monthly foreign inflows slightly outpaced outflows as foreign inflows increased by 44.35% from N14.52 billion in April to N20.96 billion in May 2016 while foreign outflows increased by 42.59% from N13.76billion to N19.62 billion within the same period.

In comparison to the same period in 2015, total FPI transactions decreased by 49.13%, whilst the total domestic transactions decreased by 3.56%.

Total transactions at the nation’s bourse increased by 55.20% from N66.96 billion recorded in April 2016 to N103.92 billion (about $0.53 billion) in May 2016.  In comparison to the same period in 2015, total transactions decreased by 28.55% from the N145.45 billion recorded in May 2015.