With 78.82% transaction, domestic investors dominate equities market in Nov.


Domestic investors  outpace foreign  investors in November trading in the equities market, transacting 78.82 per cent or N250.50billion out of N317.81 billion total transactions on The Nigerian Stock Exchange (NSE).

Foreign investors in the month under review traded 21.18 per cent or N67.31billion in the equities market in November.

On a monthly basis, The Nigerian Stock Exchange (NSE) polls trading figures from market operators on their domestic and Foreign Portfolio Investment (FPI) flows.

The NSE’s domestic & foreign portfolio investment report released on Wednesday stated that “As at November ended 30, 2020, total transactions at the nation’s bourse increased by 29.77per cent from N244.90 billion (about $634.55 million) in October 2020 to N317.81billion (about $813.87 million) in November 2020.

“The performance of the current month when compared to the performance in November 2019 (N172.52 billion) revealed that total transactions increased by 84.22per cent.

“In November 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58per cent,” the report explained

The report explained that further analysis of the total transactions executed between the current and prior month (October 2020) revealed that total domestic transactions increased by 53.51per cent from N163.18 billion in October to N250.50 billion in November 2020.

According to the report, “Total foreign transactions, however, decreased by 17.63 per cent from N81.72 billion (about $211.75 million) to N67.31 billion (about $172.38 million) between October and November 2020.”

The report by NSE explained that institutional Investors outperformed Retail Investors by 16per cent.

It explained that, “A comparison of domestic transactions in the current and prior month (October 2020) revealed that retail transactions increased by 52.10 per cent from N69.94billion in October 2020 to N106.38billion in November 2020.

“Whilst the institutional composition of the domestic market increased by 54.57 per cent from N93.24billion in October 2020 to N144.12 billion in November 2020.”

The report highlighted the performance of the market over the last decade, disclosing that over a 13 year period, domestic transactions decreased by 72.30 per cent from N3.556 trillion in 2007 to N985 billion in 2019 whilst foreign transactions increased by 53.08 per cent from N616 billion to N943 billion over the same period.

“Total domestic transactions accounted for about 51 per cent of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49 per cent of the total transactions in the same period.

“The actual performance referenced 2020A (2020 Actual) shows that total foreign transactions carried out year till date (YTD) is about N659.28billion, whilst total domestic transactions YTD is about N1239.62billion,” the report disclosed.