The total value of domestic transactions on the Nigerian Exchange Limited (NGX) in 2023 was N3.167 trillion against N410.62. billion which was the total foreign transactions carried out during the same period.
This was contained in the domestic and foreign portfolio investment report of Nigerian Exchange Limited for December 2023 obtained by Nairametrics.
Further analysis showed that the total value of domestic transactions outperformed transactions executed by foreign investors by N2.756 trillion or 671.26%.
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 during the election period as they seek to reduce their market exposure following uncertainties surrounding elections.
December transactions
As of 31 December 2023, total transactions at the nation’s bourse increased by 14.38% from N300.67 billion (about $319.15 million) in November 2023 to N343.90 billion (about $382.59 million) in December 2023.
The performance of the month when compared to the performance in December 2022 (N140.70 billion) revealed that total transactions increased by 144.42%.
In December 2023, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 72% as shown in Figure 1 below
Further analysis of the total transactions executed between the current and prior month (November 2023) revealed that total domestic transactions increased by 29.10% from N229.30 billion in November to N296.03 billion in December 2023.
However, total foreign transactions decreased by 32.92% from N71.37 billion (about $ 75.76 million) to N47.87 billion (about $ 53.26 million) between November 2023 and December 2023.
Institutional and retail investors
According to the report, Institutional Investors outperformed Retail Investors by 38%.
A comparison of domestic transactions in the current and prior month (November 2023) revealed that retail transactions decreased by 1.21% from N92.78 billion in November to N91.61 billion in December 2023.
However, the institutional composition of the domestic market increased by 49.74% from N136.52 billion in November 2023 to N204.42 billion in December 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 10.94% from N3.556trillion in 2007 to N3.167trillion in 2023 whilst foreign transactions also decreased by 33.28% from N616billion to N411billion over the same period.
Total domestic transactions accounted for about 89% of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11% of the total transactions in the same period.
What you should know
The Domestic and Foreign Portfolio Investment Report is prepared monthly 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.
