Domestic investors dominate equities market, trade 79.56% in January

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Domestic investors dominate equities market, trade 79.56% in January

The Nigerian Stock Exchange (NSE) has disclosed that domestic investors traded 79.5 per cent or N 184.94billion equities to outperformed foreign investors in January 2021.

The NSE’s domestic and Foreign Portfolio Investment (FPI) report on Monday stated that foreign investors traded 20.44 per cent or N47.52 billion transactions in the month under review.

Market watchers ascribed the increased participation of domestic investors to government policies which enhanced returns on equities as against fixed income securities. They also attributed waning interest of foreign investors to scarcity of forex which makes repatriation of their capital cumbersome.

By the report, both foreign and domestic investors traded N232.46 billion in January 2021 as against N235.46 billion reported in January 2020.

The report indicated that total transactions as of January decreased by 13.66per cent from N269.24billion or $687.06 million in December 2020 to N232.46billion or $590.82million in January 2021.

The performance of the current month when compared to the N235.46billion performance in January 2020 that revealed total transactions decreased marginally by 1.27 per cent.

In January this year, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 60 per cent.

The report explained further that total transactions executed between the current and prior month (December 2020) revealed that total domestic transactions decreased by 7.21per cent from N199.32billion in December to N184.94billion in January 2021.

The NSE’s FPI report added that total foreign transactions decreased by 32.04 per cent from N69.92billion ($178.44million) to N47.52billion  or $120.78million between December last year and January this year.

According to the report, a comparison of domestic transactions in the current and prior month (December 2020) showed that retail transactions increased by 10.16 percent from N61.22billion in December 2020 to N67.44billion in January 2021.

The institutional composition of the domestic market also decreased by 14.91per cent from N138.09billion in December 2020 to N117.50billion in January 2021.

In  a 14- year period, domestic transactions have decreased by 59.54per cent from N3.556trillion in 2007 to N1.439trillion in 2020 whilst foreign transactions increased by 18.45 per cent from N616billion to N729billion over the same period.

“Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26per cent of the total transactions in the same period.

“The transaction data for 2021 shows that total foreign transactions was circa N47.52billion, whilst total domestic transactions was circa N184.94billion”, the NSE’s FPI reports has indicated.

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