Domestic investors outpace foreign investors by 82.70%
By Kayode Tokede
Domestic investors on the Nigerian Exchange Limited (NGX) outpaced foreign investors by 82.70 per cent or N74.24 billion in July trading activities out of the N89.77billion transactions.
On a monthly basis, the NGX polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
According to the report, “As at 31 July 2021, total transactions at the nation’s bourse decreased by 10.92 per cent from N100.77billion (about $244.88million) in June 2021 to N89.77billion (about $218.20million) in July 2021.
“The performance of the current month when compared to the performance in July 2020 (N103.21billion) revealed that total transactions decreased by 13.02 per cent.
“In July 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 66 per cent.
“A further analysis of the total transactions executed between the current and prior month (June 2021) revealed that total domestic transactions decreased by 4.02 per cent from N77.35billion in June to N74.24billion in July 2021.
“Total foreign transactions also decreased by 33.69 per cent from N23.42billion (about $56.91million) to N15.53billion (about $37.75million) between June 2021 and July 2021.
The report stated that retail Investors outperformed Institutional Investors by two per cent.
The FPI report by NGX stated further that, “A comparison of domestic transactions in the current and prior month (June 2021) revealed that retail transactions increased by 4.24 per cent from N36.06billion in June 2021 to N37.59billion in July 2021.
“However, the institutional composition of the domestic market decreased by 11.24 per cent from N41.29billion in June 2021 to N36.65billion in July 2021.
“Over a 14-year period, domestic transactions decreased by 59.54per cent from N3.556trillion in 2007 to N1.439trillion in 2020 whilst foreign transactions increased by 18.45per cent from N616billion to N729billion over the same period.
“Total domestic transactions accounted for about 74per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26per cent of the total transactions in the same period.
“The transaction data for 2021 shows that total foreign transactions are circa N237.49billion, whilst total domestic transactions are circa N886.70billion.”
