Wednesday, March 23, 2022 / 05:50 PM / By NGX / Header Image Credit: NGX

On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 28 February 2022, total transactions at the nation's bourse decreased by 43.24% from N323.38billion (about $777.32million) in January 2022 5 to N183.56billion (about $441.61million) in February 20226. The performance of the current month when compared to the performance in February 2021 (N215.58billion) revealed that total transactions decreased by 14.85%. In February 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 50% as shown in figure 1 below.

Analysis of Domestic and Foreign Transactions For The Month (February'22)

 A further analysis of the total transactions executed between the current and prior month (January 2022) revealed that total domestic transactions decreased by 51.02% from N282.07billion in January to N138.13billion in February 2022. In contrast, total foreign transactions increased by 9.97% from N41.31billion (about $99.30million) to N45.43billion (about $109.30million) between January 2022 and February 2022.

 Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 11%. A comparison of domestic transactions in the current and prior month (January 2022) revealed that retail transactions decreased by 35.76% from N95.56billion in January 2022 to N61.39billion in February 2022. Similarly, the institutional composition of the domestic market decreased by 58.85% from N186.51billion in January 2022 to N76.74billion in February 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 N420.20billion, whilst total foreign transactions are circa N86.84billion.