There was significant decrease in foreign and domestic transactions on the Nigerian Stock Exchange (NSE) in the month of September according to the bourse’s report on equity trading for the period.
Total transactions for the month, according to the document obtained by investdata.com.ng fell by 67.36% from N396.86bn recorded in August, to N129.52bn (about $0.42bn), with foreign investors accounting for N84.27bn or 65.06%, which though a drop from preceding month’s N208.34bn, accounted for 52.5%. Domestic investments stood at N45.25bn or 34.94%; down from N188.52bn or 47.5%, from information collated by the NSE on retail and institutional components of total domestic transactions in September, based on data from about 98% of its active dealing members.
Foreign inflow also fell from N165.47bn to N48.42bn; and foreign outflow from N4287bn in August, to N35.85bn; just as domestic retail investors pooled only N23.53bn, as against the previous N39.11bn. The drop in domestic institutional investment was much more significant, as it decreased from N149.41bn to just N21.72bn.
Aggregate transactions for the nine-month period (January to September) however revealed an equally significant 78.60% increase from N927.08bn in 2016 to N1.655tr in 2017.
Foreign portfolio investors accounted for N783.34bn, representing 47.31%; as against N413.15bn or 44.56%; while domestic investment amounted to N872.45bn or 52.69%; up from N513.93bn or 55.44%.
Foreign inflow for the nine-month period more than doubled from N203.83bn to N468.3bn; while foreign outflow increased to N315.04bn from N209.31bn. Domestic retail investment climbed to N294.57bn from N233.61bn; and domestic institutional investors from N280.322bn to N577.88bn.
Further details in the report showed “that since 2011, foreign transactions have consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016, accounting for 55% of the total transaction volume in 2016.
“Also, foreign transactions have further declined by 66.34% from N1.539tr in 2014 to N518bn in 2016, representing about 45% of total transactions” in that year.
“Over the nine-year period, domestic transactions have significantly decreased by 85.43% from N3.556t in 2007 to N634b in 2016,” the report added.