by Tunji Andrews
Total equity transactions at the nation’s bourse increased to
N522.74 billion (about $3.37 billion) in September representing an increase of 187.27 % from the beginning of the year. Foreign Portfolio Investments (FPI) increased by 152.7 9% from N89.67 billion in January to N 226.68 billion in September 2014 while Domestic participation increased by 220.76% from N92.30 billion in January to N296.06 billion in September 2014.
On a year till date basis, total foreign transactions on the NSE came to
N1.098trillion Naira, compared to the N942.9bn in domestic transactions. The total foreign transactions came to 53.81%, with domestic players contributing 46.19% of transactions.
However, in comparing the transactions of January 2014 with that of September 2014, foreign Investors ceded about 13.28% of trading to Domestic Investors as Foreign Portfolio transactions decreased from 49.28 to 43.36% over the same period. Foreign portfolio investors’ inflows accounted for 25.66% of total transactions while the outflows accounted for 17.70% of the total transactions.
In comparison to the same period in 2013, there was an increase in total FPI by 319.62%, whilst the total domestic transactions also increased by 446.54%. Overall, there was a 383.17% increase in total transactions in comparison to the same period in 2013.
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 September is based on data obtained from about 93% of Active Dealing Members of The Exchange.
Total FPI transactions of
N616bn which accounted for 14.8% of total transactions in 2007 and has consistently increased over the years to N1,042bn representing 50.8% of the total in 2013 (An increase of 36% over the 6 year period).
Domestic transactions on the other hand started at
N3,556bn representing 85.2% in 2007, but decreased significantly to N1,009bn representing 49.2% of total transactions in 2013 (A sharp decline of 36% in the same 6 year period).