Local investors account for 87.23% of Nigeria’s equities transactions in Jan.
Nigeria’s local investors accounted for 87.23 percent of the country’s equities transactions in January 2022, while transactions by their foreign counterparts represented just 12.77percent. In helping local investors take shine off foreigners, domestic institutional investors were responding for equities transactions worth N186.51billion while their retail counterparts traded N95.56billion worth of equities on the Nigerian Exchange Limited (NGX).
In value terms, out of the N323.38billion worth of equities traded on the Nigerian Exchange Limited in January, only domestic investors’ transactions worth N282.07billion while that of foreign investors worth N41.31billion in the review month. Foreign inflow into Nigeria’s stock market was N18.10billion while foreign outflow from the market was N23.21billion.
The Nigerian Exchange Limited on monthly basis polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
The summary of transactions showed that as at January 31, 2022, total transactions at the nation’s bourse increased by 104.33percent, from N158.26billion (about $363.81million) in December 2021 to N323.38billion (about $777.32million) in January 2022.
The performance of the month in review when compared to the performance in January 2021 (N232.46billion) revealed that total transactions increased by 39.11percent.
“In January 2022, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 74percent,” the NGX noted in its recently released report on domestic & foreign portfolio participation in equity trading.
A further analysis of the total transactions executed between the review month of January and prior month (December 2021) revealed that total domestic transactions increased by 129.44percent from N122.94billion in December to N282.07billion in January 2022.
Similarly, total foreign transactions increased by 16.96percent from N35.32billion (about $81.20million) to N41.31billion (about $99.30million) between December 2021 and January 2022.
The report showed that Institutional Investors outperformed Retail Investors by 32percent. A comparison of domestic transactions in January and prior month (December 2021) revealed that retail transactions increased by 153.21percent from N37.74billion in December 2021 to N95.56billion in January 2022. However, the institutional composition of the domestic market increased by 118.91percent, from N85.20billion recorded in December 2021 to N186.51billion in January 2022.
Over a 15 year period, domestic transactions on the Nigerian Bourse decreased by 58.80percent, from N3.556trillion in 2007 to N1.465trillion in 2021 while foreign transactions also decreased by 29.38percent, from N616billion to N435billion over the same period.
Total domestic transactions accounted for about 77percent of the total transactions carried out in 2021, while foreign transactions accounted for about 23percent of the total transactions in the same period. The transaction data for 2022 showed that total domestic transactions are circa N282.07billion, while total foreign transactions are circa N41.31billion.