With 78.74% transactions, domestic investors dominate equities market in May
By Kayode Tokede
Domestic investors outperformed foreign investors in the equities market transactions, trading 76.90 percent as against 21.26 per cent traded in May 2021.
In value terms, domestic investors out of the N97.19 billion transaction in May traded N76.90 billion while foreign investors transacted N20.29 billion.
On a monthly basis, Nigerian Exchange Limited (NGX) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
According to the report, “As at 31 May 2021, total transactions at the nation’s bourse decreased by 39.23percent from N159.93billion or about $389.84million in April 2021.5 to N97.19billion or about $236.33million in May 2021.6.
“The performance of the current month when compared to the performance in May 2020 (N119.15billion) revealed that total transactions decreased by 18.43per cent.
“In May 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58percent.
“A further analysis of the total transactions executed between the current and prior month (April 2021) revealed that total domestic transactions decreased by 41.70per cent from N131.91billion in April to N76.90billion in May 2021.
“Similarly, total foreign transactions decreased by 27.59percent from N28.02billion (about $68.31million) to N20.29billion or about $49.33million between April 2021 and May 2021.
“Institutional Investors outperformed Retail Investors by 14per cent. A comparison of domestic transactions in the current and prior month (April 2021) revealed that retail transactions decreased by 9.75percent from N36.50billion in April 2021 to N32.94billion in May 2021.
“Similarly, the institutional composition of the domestic market decreased by 53.93per cent from N95.41billion in April 2021 to N43.96billion in May 2021.”
The report by NGX stated that over a 14 year period, domestic transactions decreased by 59.54percent from N3.556trillion in 2007 to N1.439trillion in 2020 whilst foreign transactions increased by 18.45percent from N616billion to N729billion over the same period.
“Total domestic transactions accounted for about 74percent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26percent of the total transactions in the same period.
“The transaction data for 2021 shows that total foreign transactions stand at circa N198.54billion, whilst total domestic transactions are circa N735.11billion,” the report added.
