Total Foreign Portfolio Investment (FPI) transactions at the Nigerian Stock Exchange (NSE), which accounted for 14.8 percent of total transactions in 2007, consistently increased over the years to 50.8 percent in 2013.
At that rate, it shows an increase of 36 percent over the six year period. On the contrary, domestic transactions which started at 85.2 percent in 2007, reduced significantly to 49.2 percent of total transactions in 2013 (representing a sharp decline of 36% in the six year period).
The highlights of domestic composition of transactions on the Exchange between June and December 2013, show that the institutional composition of the domestic market which was about 66.70 percent at the end of June decreased to 46.66 percent at the end of December 2013, while the retail composition increased significantly from 33.30 percent to 53.34 percent in the same period.
Analysis of domestic versus foreign transactions in 2013, shows that FPI transactions, which started at 36.89 percent at the beginning of the year, increased to 48.91 percent at the end of December 2013, while domestic transactions decreased from 63.11 percent to 51.09 percent over the same period.
Total foreign transactions increased by 28.90 percent from N808.4 billion in 2012 to N1.042 trillion in 2013. On the other hand, total domestic transactions increased more significantly by 98.42 percent from N508.6 billion in 2012, to N1.009 trillion in 2013. This indicates a stronger participation of domestic investors in the period under review.
“The market composition indicates an almost equal split of 50.8 percent foreign versus 49.2 percent domestic in 2013 (aggregate) compared to 61.38 percent foreign versus 38.62 percent domestic in 2012,” the NSE commented, while releasing recent trading figures from major custodians and market operators on their FPI.
By: Iheanyi Nwachukwu
