While domestic transactions at the Nigerian Stock Exchange (NSE) increased from 48.43percent in January 2016 to 63.52percent in February 2016, Foreign Portfolio Investors (FPI) transactions decreased from 51.57percent to 36.48percent over the same period.
Foreign outflows increased by 20.79percent from N26.36 billion in January 2016 to N31.84 billion while foreign inflows decreased by 35.68percent from N17.01 billion in January 2016 to N10.94 billion in February 2016.
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).
On a monthly basis, the Nigerian Stock Exchange polls trading figures from major custodians and market operators on their foreign portfolio investment (FPI) flows.
Monthly foreign outflows outpaced inflows which was consistent with the same period in 2015, according to the NSE in its report on domestic and foreign portfolio participation in equity trading for the month of February 2016.
Total transactions at the nation’s bourse increased by 39.44percent from N84.10 billion recorded in January 2016 to N117.27 billion (about $0.60 billion) in February 2016.
In comparison to the same period in 2015, total transactions decreased by 36.44percent from the N184.49 recorded in February 2015. Domestic investors significantly outperformed foreign investors by 27.04percent.
Highlights of the domestic composition of transactions on the Exchange between January and February 2016 shows that the total domestic transaction increased by 82.89percent from January to February 2016.
The institutional composition of the domestic market increased by 75.05percent from N21.85billion in January to N38.25billion in February whilst the retail composition increased by 91.95percent from N18.88billion in January to N36.24billion in February 2016.
This indicates that institutional investors slightly outperformed their retail counterparts in the period under review. Information on the retail and institutional components of the total domestic transactions in February is based on data obtained from about 99 percent of active dealing members of the Exchange.
