Out of a total N2.168 trillion worth of equities traded on the Nigerian Stock Exchange (NSE) in 2020, only N729.20billion or 33.63percent was by foreigners while N1.44trillion or 66.37 percent was accounted for by local investors, according to NSE data on domestic and foreign portfolio participation in equity trading.
The N2.168trillion worth of stocks traded in 2020 was pretty higher than 2019 when it was N1.928trillion. Foreigners had in 2019 exchanged stocks worth N942.55billion or 48.88percent, while local investors traded N985.53billion worth of equities or 51.11percent.
In 2019, foreign inflow in stocks was N419.13billion while outflow was N523.42billion. Local retail investors had in 2019 traded stocks worth N477.34billion leaving stock transaction worth N508.17billion for their institutional counterparts.
Over a fourteen (14) year period, domestic transactions decreased by 59.54percent, from N3.556trillion in 2007 to N1.44trillion in 2020 while foreign transactions increased by 18.45percent, from N616billion to N729billion over the same period.
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Though in 2020, foreigners brought in only N247.27billion they invested in Nigeria’s stock market but they took away N481.93billion from the market.
While the value of equities transactions by local retail investors in 2020 was N618.75billion, their institutional counterparts traded stocks worth N820.14billion in 2020.
On a monthly basis, the Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
As at December 31, 2020, total transactions at the nation’s bourse decreased by 15.28percent from N317.81billion (about $813.87million) in November 2020 to N269.24billion (about $687.06million) in December 2020.
The performance of December 2020 when compared to the performance in December 2019 (N127.94billion) revealed that total transactions increased by 110.44percent. In December 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by about 48percent.
Further analysis of the total transactions executed between December 2020 and preceding month (November 2020) revealed that total domestic transactions decreased by 20.43percent from N250.50billion in November to N199.32billion in December 2020.
However, total foreign transactions increased by 3.88percent from N67.31billion (about $172.38million) to N69.92billion (about $178.44million) between November and December 2020.
In December 2020, institutional Investors outperformed retail investors by 38percent. A comparison of domestic transactions in December 2020 and prior month (November 2020) revealed that retail transactions decreased by 42.45percent from N106.38billion in November 2020 to N61.22billion in December 2020.
Also, the institutional composition of the domestic market decreased by 4.18percent, from N144.12billion recorded in November 2020 to N138.09billion in December 2020.
