February: Foreign, domestic investors trade N215.58bn in equities market
By Kayode Tokede
The Nigerian Stock Exchange (NSE) has said foreign and domestic investors traded N215.58billion in equities market in February 2021.
Trading figures from market operators on Domestic and Foreign Portfolio Investment (FPI) flows, showed that as at 28 February 2021, total transactions at the nation’s bourse decreased by 7.26 per cent from N232.46 billion (about $590.82million) in January 2021 5 to N215.58billion (about $525.21million) in February 20216.
According to the report, “The performance of the current month when compared to the performance in February 2020 (N148.50billion) revealed that total transactions increased by 45.17 per cent.
“In February 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 42 per cent.
“A further analysis of the total transactions executed between the current and prior month (January 2021) revealed that total domestic transactions decreased by 16.99per cent from N184.94billion in January to N153.51billion in February 2021.
“However, total foreign transactions increased by 30.62 per cent from N47.52billion (about $120.78million) to N62.07billion (about $151.23million) between January 2021 and February 2021.
“Institutional Investors outperformed Retail Investors by 30 per cent.
“A comparison of domestic transactions in the current and prior month (January 2021) revealed that retail transactions decreased by 20.23 per cent from N67.44billion in January 2021 to N53.80billion in February 2021.
“The institutional composition of the domestic market also decreased by 15.14 per cent from N117.50 billion in January 2021 to N99.71 billion in February 2021.”
The report stated that performance of the market over the last decade showed that, domestic transactions decreased by 59.54 per cent from N3.556 trillion in 2007 to N1.439 trillion in 2020 whilst foreign transactions increased by 18.45per cent from N616 billion to N729billion over the same period.
According to the report, “Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26 per cent of the total transactions in the same period.”
