BY BAMIDELE FAMOOFO
A recent report released by the Nigerian Exchange Limited on the performance of domestic and foreign portfolio investment on the Exchange in November 2021 showed that foreign investment increased by about 64% to N69.6billion as domestic investment dropped by about 26% in the same period.
On a monthly basis, Nigerian Exchange Limited polls trading figures from market operators on their Domestic and Foreign Portfolio Investment flows. As at 30 November 2021, total transactions at the nation’s bourse decreased by 7.95% from N213.07billion (about $513.31million) in October 2021 to N196.14billion (about $472.54million) in November 2021.
The performance of the current month when compared to the performance in November 2020 (N317.81 billion) revealed that total transactions decreased by 38.28%. In November 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 30%.
A further analysis of the total transactions executed between the current and prior month (October 2021) revealed that total domestic transactions decreased by 25.82% from N170.65billion in October to N126.58billion in November 2021. However, total foreign transactions increased by 63.98% from N42.42billion (about $102.21million) to N69.56billion (about $167.58million) between October 2021 and November 2021.
Analysis of domestic transactions showed that Institutional Investors outperformed Retail Investors by 28%. A comparison of domestic transactions in the current and prior month (October 2021) revealed that retail transactions decreased by 21.99% from N58.34billion in October 2021 to N45.51billion in November 2021. Similarly, the institutional composition of the domestic market decreased by 27.82% from N112.31billion in October 2021 to N81.07billion in November 2021.
Historical analysis of domestic and foreign transactions of the market over the last decade over a fourteen(14) year period, showed that domestic transactions decreased by 59.54% from N3.556 trillion in 2007 to N1.439 trillion in 2020 whilst foreign transactions increased by 18.45% from N616billion to N729 Billion over the same period.
Total domestic transactions accounted for about 74% of the total transactions carried out in 2020, whilst foreign transactions accounted for about 26% of the total transactions in the same period.
The transaction data for 2021 shows that total foreign transactions are circa N399.18billion, whilst total domestic transactions are circa N1.342 trillion.
The Domestic and Foreign Portfolio Investment report is prepared on a monthly basis, with trading figures from market operators on their Domestic and Foreign Portfolio Investment flows. These transactions are carried out by Domestic and Foreign investors. The Domestic investors are further categorised into Retail and Institutional investors.
