Investors trade N1.044trn worth of Nigeria equities in 5 months

In five months to May 31, 2023, stocks worth N1.044 trillion were traded on the Nigerian Bourse, representing a decline from N1.505 trillion recorded in the corresponding period of 2022.

According to the domestic and foreign portfolio investment report of Nigerian Exchange Limited (NGX), out of the record value of equities traded in the review five months, foreign investors accounted for a paltry N99.34billion or 9.51percent while domestic investors traded N945.02billion or 90.49percent.

Foreign inflow into stocks was N49.30 billion in five months while foreign outflow was N50.04 billion. Domestic retail investors traded N331.93 billion worth of equities in the review five-month period as against N613 billion by domestic institutional investors.

In May 2023, invested exchanged stocks worth N322.92billion, April (N191.21billion), March (N146.22billion), and February (N188.91billion), while in January they traded N195.10billion worth of stocks on the Nigerian Exchange Limited (NGX).

A further analysis of the month-on-month (MoM) total transactions executed between May and the prior month (April 2023) revealed that total domestic transactions increased by 56.37percent from N182.74billion in April to N285.76billion in May 2023.

Similarly, total foreign transactions increased significantly by 338.72 percent, from N8.47 billion (about $ 18.31 million) to N37.16 billion (about $79.88 million) between April 2023 and May 2023.

Also on a monthly basis, institutional investors outperformed retail investors by 38 percent in May.

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A comparison of domestic transactions in the review and prior month (April 2023) showed that retail transactions increased by 19.29 percent, from N74.19 billion in April to N88.50 billion in May 2023.

Similarly, the institutional composition of the domestic market increased significantly by 81.72 percent, from N108.55 billion in April 2023 to N197.26 billion in May 2023.

As at 31 May 2023, total transactions at the nation’s bourse increased by 68.88percent from N191.21billion (about $413.25million) in April 2023 to N322.92billion (about $693.99million) in May 2023.

The performance of the review month when compared to the performance in May 2022 (N607.45 billion) showed that total transactions decreased by 46.84 percent. In May 2023, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 76 percent.