Domestic investors have regained control of activities at the Nigerian stock market, according to report at the Nigerian Stock Exchange (NSE) on equities transaction in January 2014.
The report shows that in January 2014, domestic investors (retail and institutional) accounted for 50.72 percent of the total equities transactions while foreign investors controlled 49.28 percent. In the period under review, the total domestic transactions worth N92.30 billion against total foreign transaction at N89.67 billion.
As of January 2013, foreign investors accounted for 36.89 percent of equities market transactions while domestic investors accounted for 63.11 percent. In December 2013, foreign investors controlled 48.91 percent of the equities market transactions, while domestic investors accounted for 51.09 percent.
Out of the total transactions worth N181.97 billion in January 2014, the market recorded total foreign inflow of N39.53 billion, while total foreign outflow was put at N50.14 billion.
The NSE, which on a monthly basis polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI), noted that FPI transactions which accounted for 48.91 percent at the end of December 2013, increased marginally to 49.28 percent at the end of January 2014.
In contrast, domestic transactions decreased marginally from 51.09 percent to 50.72 percent over the same period. However, this represents an overall increase of 27.93 percent in total transactions, broken down into a 28.89 percent increase in FPI and a 27.01 percent increase in domestic transactions.
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transactions on the NSE (equities only).
In comparison to the same period in 2013, there was a significant increase in total FPI by 45.90 percent, while the total domestic transactions reduced by 12.21percent.
However, the FPI outflows outpaced inflows that were the reverse when compared with the same period in 2013. Overall, there was a 9.22 percent increase in total transactions in comparison with the same period in 2013.
