Domestic investors were kings in Nigeria’s N1.9trn equities deals

Domestic investors were kings in Nigeria’s stock trading, a summary of transactions for the eleven (11) months period to November 2020 showed.
The equity market surged 50percent in 2020 – its best performance in over a decade and well above its global peers – as local investors shifted from risk-free to riskier assets.

Out of the N1.898trillion worth of stocks traded in the review period, domestic investors accounted for N1.24trillion (65.28percent).

Domestic retail investors exchanged N557.57billion worth of stocks while equities valued at N682.05billion were traded by domestic institutional investors.

Meanwhile, a foreigner in the market traded only a N659.28billion worth of equities, representing 34.72percent.

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Every month, the Nigerian Stock Exchange (NSE) polls trading figures from market operators on their domestic and foreign portfolio investment (FPI) flows. It shows that foreigners brought in N226.13billion into the market but took away N433.15billion.

Historical analysis of domestic and foreign transactions show that over a thirteen (13) year period, domestic transactions decreased by 72.30percent from N3.556trillion in 2007 to N985billion in 2019 while foreign transactions increased by 53.08percent from N616billion to N943billion over the same period.

Total domestic transactions accounted for about 51percent of the total transactions carried out in 2019, while foreign transactions accounted for about 49percent of the total transactions in the same period.