Thursday, May 26, 2022 / 05:41 PM / By NGX / Header Image Credit: CMC Markets

On a monthly basis, Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 30 April 2022, total transactions at the nation’s bourse increased by 11.13% from N185.26billion (about $445.25million) in March 2022 5 to N205.88billion (about $494.26million) in April 20226. The performance of the current month when compared to the performance in April 2021 (N159.93billion) revealed that total transactions increased by 28.73%. In April 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 74% as shown in figure 1 below.

Analysis of Domestic and Foreign Transactions For The Month (April’22)

A further analysis of the total transactions executed between the current and prior month (March 2022) revealed that total domestic transactions increased by 24.96% from N143.09billion in March to N178.80billion in April 2022. In contrast, total foreign transactions decreased by 35.78% from N42.17billion (about $101.36million) to N27.08billion (about $65.01million) between March 2022 and April 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 24%. A comparison of domestic transactions in the current and prior month (March 2022) revealed that retail transactions increased by 12.56% from N60.61billion in March 2022 to N68.22billion in April 2022. Similarly, the institutional composition of the domestic market increased by 34.07% from N82.48billion in March 2022 to N110.58billion in April 2022

Historical Analysis of Domestic and Foreign Transactions

The data in figure 7 below highlights the performance of the market over the last decade. Over a fifteen (15) year period, domestic transactions decreased by 58.80% from N3.556t in 2007 to N1.465t in 2021 whilst foreign transactions also decreased by 29.38% from N616bn to N435bn over the same period. 

Total domestic transactions accounted for about 77% of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23% of the total transactions in the same period. 

The transaction data for 2022 shows that total domestic transactions are circa N742.09billion, whilst total foreign transactions are circa N156.09billion.