Foreigners take shine off local investors in 11 months equities deal
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.