Key Highlights
- Domestic transactions outperformed transactions executed by foreign investors by N295 billion or 663%.
- Total transactions at the nation’s bourse decreased by 3.17% from N195.10 billion in January 2023 to N188.91 billion in February 2023.
- Every month, Nigerian Exchange Limited (NGX) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
The total value of domestic transactions on the Nigerian Exchange (NGX) in February 2023 was N339.49 billion, as against N44.52 billion which was recorded during the same period last year.
This is according to the domestic and foreign portfolio investment report of Nigerian Exchange Limited for January 2023, a copy of which was obtained by Nairametrics.
The report showed that the total value of domestic transactions outperformed transactions executed by foreign investors by N295 billion or 663%.
This follows low sentiments majorly on the part of foreign investors arising following the build-up to the 2023 election and other economic headwinds.
Investors’ sentiment is usually weak pre-election period as they seek to reduce their market exposure when elections draw closer.
February Transactions
As of 28 February 2023, total transactions at the nation’s bourse decreased by 3.17% from N195.10 billion (about $422.94 million) in January 2023 to N188.91billion (about $409.72million) in February 2023.
The performance of the current month when compared to the performance in February 2022 (N183.56 billion) revealed that total transactions increased by 2.91%. In February 2023, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 80%
Further analysis of the total transactions executed between the current and prior month (January 2023) revealed that total domestic transactions decreased by 0.53% from N170.20 billion in January to N169.29 billion in February 2023.
However, total foreign transactions decreased more significantly by 21.20% from N24.90 billion (about $53.98 million) to N19.62 billion (about $42.51 million) between January 2023 and February 2023.
Institutional and retail investors
According to the report, Institutional Investors outperformed Retail Investors by 58%.
A comparison of domestic transactions in the current and prior month (January 2023) revealed that retail transactions decreased by 2.44% from N35.66 billion in January to N34.79 billion in February 2023. Similarly, the institutional composition of the domestic market decreased by 0.03% from N134.54 billion in January 2023 to N134.50 billion in February 2023.
Performance in a decade
Highlights of the performance of the market over the last decade showed that over a sixteen (16) year period, domestic transactions decreased by 45.30% from N3.556 trillion in 2007 to N1.945 trillion in 2022 whilst foreign transactions also decreased by 38.47% from N616 billion to N379 billion over the same period.
Total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period.
What you should know
The Domestic and Foreign Portfolio Investment Report is prepared every month by NGX Regulation Limited, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. These transactions are carried out by Domestic and Foreign investors. Domestic investors are further categorized into Retail and Institutional investors.
