Within just two trading months, total transactions by both foreign portfolio and domestic investors at the Nigerian Stock Exchange (NSE) declined by about N53.6billion, latest trading figures for October showed.
As at August, the total transactions on the local bourse stood at N117.71 billion; in September it was N94.77billion; while in October it declined to N64.03billion, showing a significant decline between August and October 2016.
Year-to-Date (ytd), total transaction at the local bourse stood at N991.11billion against N1.667trillion in the comparing ten months period of 2015. In the ten months to October 2016, foreign inflows into the Nigerian Stock Exchange stood at N222.5billion against an ouflow of N221.88billion. Also year-to-date (ytd) foreign investors accounted for paltry 44.84 percent of equities trading while domestic investors accounted for 55.16 percent.
Total transactions at the nation’s bourse decreased significantly by 32.44 percent from N94.77 billion recorded in September 2016 to N64.03 billion (about $210million) in October 2016. Also, total transactions from January to October 2016 decreased significantly by 40.55 percent from N1.667trillion recorded within the same period in 2015 to N991.11 billion in 2016.
“We observed that both foreign and domestic activities are decreasing, however the domestic activity is decreasing faster”, according to the Nigerian Stock Exchange which on a monthly basis polls trading figures from major custodians and market operators on their foreign portfolio investment (FPI) flows.
The 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). Information on the retail and institutional components of the total domestic transactions in October is based on data obtained from about 96 percent of active dealing members of the Exchange.
The institutional composition of the domestic market decreased by 37.09percent from N30.95billion recorded in September to N19.47billion in October.
The retail composition decreased by 34.16percent from N20.23billion in September to N13.32billion in October. Institutional investors outperformed their retail counterparts in the period under review.
In October 2016, domestic investors outperformed their foreign counterparts by about 2.42percent. Domestic transactions decreased by 35.93percent from N51.18 billion in September 2016 to N32.79 billion in October 2016. Foreign Portfolio Investment (FPI) transactions decreased by 28.33percent, from N43.59billion recorded in September 2016 to N31.24 billion in October 2016.
Monthly foreign inflows outpaced outflows as foreign inflows decreased by 23.51 percent from N24.41 billion in September to N18.67 billion in October 2016. Foreign outflows also decreased by 34.46 percent from N19.18 billion to N12.57 billion within the same period.
