Domestic investors account for 61.04% of N1.10trn equities deals in 7 months

Out of N1.106trillion worth of Nigerian equities exchanged on the Bourse in seven months to July 2020, domestic investors accounted for 61.04percent or N675.55billion, while their foreign counterparts accounted for 38.96percent or N431.22billion, report on domestic and foreign portfolio participation in equity trading shows.

Though the value of equities exchanged in the seven months to July 2020 represents a decline from N1.201trillion in same period of 2019.

In the period under review, domestic re t a i l i nvestors exchanged N318.95billion worth stocks while domestic institutional investors accounted for N356.60billion. The market saw N143.65billion foreign inflow as against N287.5billion foreign outflow.

On a monthly basis, the Nigerian Stock Exchange (NSE) polls trading figures from market operators on their domestic and Foreign Portfolio Investment ( FPI) flows. As at July 31, 2020, total transactions at the nation’s bourse decreased by 19.92percent from N128.88billion (about $333.25million) in June 2020 to N103.21billion ( about $265.55million) in July 2020.

The performance of the review month when compared to the performance in July 2019 ( N113.47billion) revealed that total transactions decreased by 9.04percent. In July 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 32percent.

Total domestic transactions decreased by 5.40percent from N72.54billion in June to N68.62billion in July 2020. However, total foreign transactions declined sharply by 38.60percent from N56.34 billion ( about $90.89million) to N34.59 billion (about $89million) between June and July 2020.

Ins t i t u t i o n a l Inv e s t o r s outperformed Retail Investors by 6percent. A comparison of domestic transactions in the current and prior month (June 2020) revealed that retail transactions increased marginally by 0.62percent from N32.34 billion in June 2020 to N32.54 billion in July 2020; while the institutional composition of the domestic market decreased by 10.25percent from N40.20 billion in June 2020 to N36.08 billion in July 2020. Over a thirteen (13) year period, domestic transactions decreased by 72.30percent from N3.556trillion in 2007 to N985billion in 2019 while foreign transactions increased by 53.08percent from N616billion to N943billion over the same period.

Total domestic transactions accounted for about 51percent of the total transactions carried out in 2019, while foreign transactions accounted for about 49percent of the total transactions in the same period.