For­eign­ers take shine off lo­cal in­vestors in 11 months eq­ui­ties deal

Business Day (Nigeria) - - LIVE @ THE EXCHANGES -

In eleven months to Novem­ber 30, 2018, for­eign in­vestors ac­counted for 50.87per­ent of eq­ui­ties trad­ing on the Nige­rian Stock Ex­change val­ued at N1.159tril­lion while do­mes­tic in­vestors which ac­counted for 49.13per­cent traded stocks val­ued at N1.119tril­lion.

To­tal mar­ket trans­ac­tions at the Nige­rian Stock Ex­change (NSE) in the eleven months pe­riod in­creased by N216­bil­lion to N2.278tril­lion as against N2.062tril­lion achieved in the cor­re­spond­ing pe­riod of 2017.

The Nige­rian Stock Ex­change (NSE) polls trad­ing fig­ures from ma­jor cus­to­di­ans and mar­ket op­er­a­tors on their For­eign Port­fo­lio In­vest­ment (FPI) flows. Anal­y­sis of trans­ac­tions on the Ex­change as at the end of Novem­ber 2018 shows that for­eign out­flow from the Nige­rian stock mar­ket reached a record high of N605.54bil­lion, about N203.28bil­lion higher than an out­flow of N402.26bil­lion recorded same pe­riod in 2017. In the re­view pe­riod, for­eign in­flow was lower at N553.48bil­lion, a short­fall of about N45.34bil­lion com­pared with N598.82bil­lion for­eign in­flow in 2017.

Do­mes­tic in­vestors ac­counted for N1. 119 tril­lion worth of stocks trans­ac­tions in the re­view pe­riod while for­eign in­vestors ac­counted for N1. 159tril­lion; while in the same pe­riod of 2017 for­eign in­vestors ac­counted for N1.001tril­lion worth of stocks trans­ac­tions while do­mes­tic in­vestors ac- counted for N1.061tril­lion worth of stocks in eleven months to Novem­ber 2017.

The do­mes­tic com­po­si­tion of trans­ac­tions on the Ex­change be­tween Jan­uary and Novem­ber 2018 shows re­tail and in­sti­tu­tional trans­ac­tions re­spec­tively ac­counted for 52.29per­cent and 47.71per­cent of the do­mes­tic mar­ket in Novem­ber 2018. This in­di­cates a higher par­tic­i­pa­tion by re­tail in­vestors over their in­sti­tu­tional coun­ter­parts in Novem­ber 2018.

Month- on- mont h (mom), to­tal trans­ac­tions at the na­tion’s bourse in­creased by 23.28per­cent, from N121.45 bil­lion recorded in Oc­to­ber 2018 to N149.72 bil­lion (about $488.8 mil­lion) in Novem­ber 2018, the NSE noted in its re­port on do­mes­tic and for­eign port­fo­lio par­tic­i­pa­tion in eq­uity trad­ing for the month of Novem­ber. For­eign in­vestors out­per­formed do­mes­tic in­vestors by 12.70per­cent in Novem­ber 2018. To­tal for­eign trans­ac­tions in­creased marginally by 1.05per­cent, from N83.48 bil­lion in Oc­to­ber to N84.36 bil­lion in Novem­ber 2018.

The for­eign out­flows in­creased by 15.78per­cent, from N42.66 bil­lion to N49.39bil­lion with an in­verse re­duc­tion in for­eign in­flows which re­duced by 16.72per­cent, from N40.82 bil­lion to N34.97 bil­lion over the same pe­riod. The to­tal do­mes­tic trans­ac­tions in­creased by 72.13per­cent from N37.97 bil­lion in Oc­to­ber 2018 to N65.36 bil­lion in Novem­ber 2018.

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