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 31 July 2022, total transactions at the nation’s bourse decreased by 35.36% from N156.52billion (about $371.53million) in June 2022 5 to N101.18billion (about $236.86million) in July 20226 . The performance of the current month when compared to the performance in July 2021 (N89.77billion) revealed that total transactions increased by 12.71%. In July 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 42% as shown in figure 1 below

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

A further analysis of the total transactions executed between the current and prior month (June 2022) revealed that total domestic transactions decreased significantly by 37.46% from N114.33billion in June to N71.50billion in July 2022. Similarly, total foreign transactions decreased by 29.65% from N42.19billion (about $100.15million) to N29.68billion (about $69.47million) between June 2022 and July 2022.

Analysis of Domestic Transactions

Figure 4 below shows that Institutional Investors outperformed Retail Investors by 14%. A comparison of domestic transactions in the current and prior month (June 2022) revealed that retail transactions decreased by 30.51% from N44.11billion in June to N30.65billion in July 2022. Similarly, the institutional composition of the domestic market decreased by 41.83% from N70.22billion in June 2022 to N40.85billion in July 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 N1.490trillion, whilst total foreign transactions are circa N273.16billion.