A new report from the Nigerian Exchange Limited (NGX) has shown that over sixteen years, domestic transactions decreased by 45.30% to N1.945 trillion in 2022, down from N3.556 trillion in 2007.
In the same vein, the report showed that foreign transactions also decreased by 38.47% from N616 billion to N379 billion over the same period. Â
The NGX’s Domestic and Foreign Portfolio Investment Report noted that the declines were caused by low sentiments on the part of both local and foreign investors, arising from the market meltdown in 2008.Â
2022 transactions: The total domestic transactions in 2022 accounted for about 84% of the total transactions carried out last year. On the other hand, foreign transactions accounted for just 16% of the total transactions in the same period. Â
The transaction data for 2022 also showed that the total domestic transactions were N1.945 trillion, whilst total foreign transactions stood at N379.23 billion.Â
The report noted that as of 31 December 2022, total transactions at the nation’s bourse increased by 34.80% from N104.38 billion (about $234.88 million) in November 2022 to N140.70 billion (about $305.15 million) in December 2022. Â
The performance of December 2022 when compared to the performance in December 2021 (N158.26 billion) revealed that total transactions decreased by 11.10%. In December 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 78%Â Â
Further analysis of the total transactions executed between the current and prior month (November 2022) revealed that total domestic transactions increased significantly by 39.51% from N89.95 billion in November to N125.49 billion in December 2022. Â
However, total foreign transactions increased by 5.41% from N14.43 billion (about $ 32.47 million) to N15.21 billion (about $32.99 million) between November 2022 and December 2022.Â
Institutional and retail investors: Further analysis showed that institutional investors outperformed retail Investors by 44%. A comparison of domestic transactions in the current and prior month (November 2022) revealed that retail transactions increased by 32.53% from N26.62 billion in November to N35.28 billion in December 2022.Â
Similarly, the institutional composition of the domestic market increased by 42.44% from N63.33 billion in November 2022 to N90.21 billion in December 2022.Â
What you should know: The NGX report is prepared monthly by NGX Regulation Limited, using trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.Â
