Domestic investors have remained dominant over their foreign counterparts since the beginning of the financial year 2022, recording about N1.3 trillion turnovers as at the end of May as against N201.3 billion transactions done by their foreign counterparts in the same period. BAMIDELE FAMOOFO writes.
Domestic investors account for 86% of turnover in May
Foreign capital outflow exceeds inflow at N105.4bn
A review of activities of domestic investors which comprise of institutional and retail investors and their foreign counterparts as at the end of May 2022, showed that local investors have consistently increased investment in the Nigerian Exchange Limited from N282.07 billion in January to N562.15 billion in May 2022, representing an increase of 99.3 percent. On the flipside however, foreign portfolio investment contracted by 9.7 percent in the same period, from N41.31 billion in January to N45.30 billion in May 2022.
Historical analysis of both domestic and foreign investors showed that over a 15-year period, domestic transactions decreased by 58.80 percent from N3.556 trillion in 2007 to N1.465 trillion in 2021 whilst foreign transactions also decreased by 29.38 percent from N616billion to N435 billion over the same period.
Further analysis indicated that total domestic transactions accounted for about 77 percent of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23 percent of the total transactions in the same period.
The transaction data for 2022 shows that total domestic transactions stands at about N1.304 trillion, whilst total foreign transactions are circa N201.39billion.
As at 31 May 2022, total transactions at the nation’s bourse increased by 195.05 percent from N205.88 billion (about $494.26million) in April 2022 to N607.45 billion (about $1.45billion) in May 2022. The performance of the current month when compared to the performance in May 2021 (N97.19 billion) revealed that total transactions increased by 525.01 percent.
In May 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 86 percent.
A further analysis of the total transactions executed between the current and prior month (April 2022) revealed that total domestic transactions increased by 214.40 percent from N178.80billion in April to N562.15billion in May 2022. In contrast, total foreign transactions increased by 67.28 percent from N27.08billion (about $65.01million) to N45.30billion (about $108.02million) between April 2022 and May 2022.
Analysis of domestic transactions shows that Institutional Investors outperformed Retail Investors by 74.0 percent. A comparison of domestic transactions in the current and prior month (April 2022) revealed that retail transactions increased by 8.75 percent from N68.22billion in April 2022 to N74.19billion in May 2022. Similarly, the institutional composition of the domestic market increased by 341.27 percent from N110.58 billion in April 2022 to N487.96 billion in May 2022.
“A further analysis of the total transactions executed between the current and prior month (February 2022) revealed that total domestic transactions increased by 3.59 percent from N138.13billion in February to N143.09billion in March 2022”
Monthly performance review
Total transactions at the nation’s bourse as at April 30, 2022, increased by 11.13 percent from N185.26 billion (about $445.25million) in March 2022 to N205.88 billion (about $494.26million) in April 2022. The performance of the current month when compared to the performance in April 2021 (N159.93 billion) revealed that total transactions increased by 28.73 percent. In April 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 74 percent.
A further analysis of the total transactions executed between the current and prior month (March 2022) revealed that total domestic transactions increased by 24.96 percent from N143.09billion in March to N178.80 billion in April 2022.
In contrast, total foreign transactions decreased by 35.78 percent from N42.17 billion (about $101.36million) to N27.08billion (about $65.01million) between March 2022 and April 2022.
Further analysis showed that Institutional Investors outperformed Retail Investors by 24 percent.
A comparison of domestic transactions in the current and prior month (March 2022) revealed that retail transactions increased by 12.56 percent from N60.61billion in March 2022 to N68.22billion in April 2022. Similarly, the institutional composition of the domestic market increased by 34.07 percent from N82.48 billion in March 2022 to N110.58 billion in April 2022.
The transaction data for 2022 shows that total domestic transactions are circa N742.09billion, whilst total foreign transactions are circa N156.09billion.
MARCH
As at 31 March 2022, total transactions at the nation’s bourse increased by 0.93 percent from N183.56 billion (about $441.61million) in February 2022 to N185.26 billion (about $445.25million) in March 2022. The performance of the current month when compared to the performance in March 2021 (N228.49billion) revealed that total transactions decreased by 18.92 percent.
In March 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 54 percent.
A further analysis of the total transactions executed between the current and prior month (February 2022) revealed that total domestic transactions increased by 3.59 percent from N138.13billion in February to N143.09billion in March 2022.
In contrast, total foreign transactions decreased by 7.17 percent from N45.43billion (about $109.30million) to N42.17billion (about $101.36million) between February 2022 and March 2022. Institutional Investors outperformed Retail Investors by 16 percent.
A comparison of domestic transactions in the current and prior month (February 2022) revealed that retail transactions decreased by 1.27 percent from N61.39 billion in February 2022 to N60.61 billion in March 2022.
However, the institutional composition of the domestic market increased by 7.48 percent from N76.74billion in February 2022 to N82.48billion in March 2022. The transaction data for 2022 shows that total domestic transactions are circa N563.29billion, whilst total foreign transactions are circa N129.01billion.
“The transaction data for 2022 shows that total domestic transactions are circa N742.09billion, whilst total foreign transactions are circa N156.09billion”
FEBRUARY
Total transactions at the nation’s bourse as at February 28, 2022, decreased by 43.24 percent from N323.38 billion (about $777.32million) in January 2022 to N183.56billion (about $441.61million) in February 2022.
The performance of the current month when compared to the performance in February 2021 (N215.58 billion) revealed that total transactions decreased by 14.85 percent.
In February 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 50.0 percent.
A further analysis of the total transactions executed between the current and prior month (January 2022) revealed that total domestic transactions decreased by 51.02 percent from N282.07billion in January to N138.13billion in February 2022.
In contrast, total foreign transactions increased by 9.97 percent from N41.31billion (about $99.30million) to N45.43billion (about $109.30million) between January 2022 and February 2022.
Institutional Investors outperformed Retail Investors by 11 percent. A comparison of domestic transactions in the current and prior month (January 2022) revealed that retail transactions decreased by 35.76 percent from N95.56billion in January 2022 to N61.39billion in February 2022.
Similarly, the institutional composition of the domestic market decreased by 58.85 percent from N186.51billion in January 2022 to N76.74billion in February 2022. The transaction data for 2022 shows that total domestic transactions are circa N420.20billion, whilst total foreign transactions are circa N86.84billion.
JANUARY
As at 31 January 2022, total transactions at the nation’s bourse increased by 104.33 percent from N158.26billion (about $363.81million) in December 20213 to N323.38billion (about $777.32million) in January 2022. The performance of the current month when compared to the performance in January 2021 (N232.46 billion) revealed that total transactions increased by 39.11 percent. In January 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 74 percent.
A further analysis of the total transactions executed between the current and prior month (December 2021) revealed that total domestic transactions increased by 129.44 percent from N122.94billion in December to N282.07billion in January 2022. Similarly, total foreign transactions increased by 16.96 percent from N35.32billion (about $81.20million) to N41.31billion (about $99.30million) between December 2021 and January 2022.
Institutional Investors outperformed Retail Investors by 32 percent. A comparison of domestic transactions in the current and prior month (December 2021) revealed that retail transactions Increased by 153.21 percent from N37.74billion in December 2021 to N95.56billion in January 2022.
However, the institutional composition of the domestic market increased by 118.91% from N85.20billion in December 2021 to N186.51billion in January 2022. The transaction data for 2022 shows that total domestic transactions are circa N282.07billion, whilst total foreign transactions are circa
N41.31billion.
