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Local investors account for 60.86% of Nigeria’s equities trading in 8 months

Local investors account for 60.86% of Nigeria’s equities trading in 8 months

In eight months to August 31, 2020, Nigeria’s domestic investors accounted for 60.86 percent of equities trading on the Nigerian Stock Exchange (NSE), while foreign investors accounted for just 39.14 percent.

The total value of stocks traded on the Bourse in the eight-month period under review stood at N1.201 trillion –foreigners accounted for N 470.2 billion while domestic investors accounted for N731.02 billion.

Domestic retail investors traded stocks worth N345.56 billion while their institutional counterparts accounted for N385.46billion. Foreign inflows amounted to N161.31billion while foreign outflows stood at N308.89billion.

On a monthly basis, the Nigerian Stock Exchange polls trading figures from market operators on their domestic and foreign Portfolio Investment (FPI) flows.

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As at August 31, 2020, total transactions at the nation’s bourse decreased month-on-month (MoM) by 8.49percent, from N103.21billion (about $265.55million) in July 2020 to N94.45billion (about $244.27million) in August 2020.

The performance of the current month when compared to the performance in August 2019 (N121.99billion) revealed that total transactions decreased by 22.58percent.

In August 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 18percent.

Further analysis of the total transactions executed between August and July 2020 revealed that total domestic transactions decreased by 19.16percent, from N68.62billion in July to N55.47billion in August 2020. However, total foreign transactions increased by 12.69percent from N34.59billion (about $89.00million) to N38.98billion (about $100.81million) between July and August 2020.

A comparison of domestic transactions in the month of August and July 2020 revealed that retail transactions decreased by 18.22percent from N32.54billion in July 2020 to N26.61billion in August 2020; while the institutional composition of the domestic market decreased by 20.01percent, from N36.08billion in July 2020 to N28.86billion in August 2020.