LATEST UPDATES
Card-image-cap

Market | Capital Market

Domestic and Foreign Portfolio Participation in Equity Trading – January 2023

Mar 09, 2023   •   by   •   Source: NGX   •   eye-icon 185 views



On a monthly basis, Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)2 flows. As at 31 January 2023, total transactions at the nation’s bourse increased by 38.66% from N140.70billion (about $305.15million) in December 3 2022 to N195.10billion (about $422.94million) in January 4 2023. The performance of the current month when compared to the performance in January 2022 (N323.38billion) revealed that total transactions decreased by 39.66%. In January 2023, 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 (January ’23)

A further analysis of the total transactions executed between the current and prior month (December 2022) revealed that total domestic transactions increased significantly by 35.63% from N125.49billion in December to N170.20billion in January 2023. However, total foreign transactions increased by 63.71% from N15.21billion (about $32.99million) to N24.90billion (about $53.98million) between December 2022 and January 2023

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 58%. A comparison of domestic transactions in the current and prior month (December 2022) revealed that retail transactions increased by 1.08% from N35.28billion in December to N35.66billion in January 2023. However, the institutional composition of the domestic market increased by 49.14% from N90.21billion in December 2022 to N134.54billion in January 2023.

 

 

 

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 sixteen (16) year period, domestic transactions decreased by 45.30% from N3.556t in 2007 to N1.945t in 2022 whilst foreign transactions also decreased by 38.47% from N616bn to N379bn over the same period. 

 

Total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period. 

 

The transaction data for 2023 shows that total domestic transactions are circa N170.20billion, whilst total foreign transactions are circa N24.90billion.

 

 

 


Related items.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.