In the nine months to September 30, 2016, foreign investors reduced their transaction in Nigeria equities by a huge N433bn when compared to the corresponding period of 2015, analysis of transactions for the period shows.
Total transactions (inflow and outflow) by foreign investors at the Nigeria equities market which was N846.92bn as at nine months to September 2015, declined remarkably to N413.14bn in same period of 2016.
Foreign inflow and outflow in Nigeria equities market which were N396.36bn and N450.56bn respectively as at September 2015 declined remarkably to N203.83bn and N209.31bn.
The Foreign Portfolio Investment (FPI) outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (equities only).
Domestic and foreign portfolio participation in equity trading – September 2016 shows though both foreign and domestic activities are decreasing, the foreign activity is decreasing faster.
Total transactions at the nation’s bourse decreased by 19.49% from N117.71 bn recorded in August 2016 to N94.77 bn (about $0.31bn) in September 2016.
Also, total transactions from January to September 2016 decreased significantly by 40.59% from N1.560tn recorded within the same period in 2015 to N927.08 bn in 2016. Domestic investors outperformed their foreign counterparts by about 8%.
Domestic transactions decreased by 16.98% from N61.65 bn in August 2016 to N51.18 bn in September 2016.
Foreign Portfolio Investment transactions decreased by 22.24%; from N56.06bn in August 2016 to N43.59bn in September 2016. Monthly foreign inflows outpaced outflows as foreign inflows decreased by 29.65%, from N34.70 bn in August to N24.41 bn in September 2016.
Also, foreign outflows decreased by 10.21%, from N21.36 billion to N19.18 bn within the same period. The institutional composition of the domestic market decreased by 19.11%; from N38.26 bn in August to N30.95bn in September. The retail composition decreased by 13.51% from N23.39bn in August to N20.23bn in September.
Institutional investors significantly outperformed their retail counterparts in the period under review. On monthly basis, the Nigeria Stock Exchange (NSE) polls trading figures from major custodians and market operators on their foreign portfolio investment (FPI) flows.
The NSE said information on the retail and institutional components of the total domestic transactions in September is based on data obtained from about 97% of active dealing members of the Exchange.
