FPI rises by 59.8% in half year

The Nigerian Stock Exchange has reported a 59.81 per cent increase in total Foreign Portfolio Investment transactions within the first half of 2017.
The NSE in its current “Foreign Portfolio Investment Report -2017” stated, “In comparison to the first half of 2016, total FPI transactions increased by 59.81 per cent from N269.22 billion to N430.23, whilst the total domestic transactions increased by 42.19 per cent from N505.03 billion to N355.19 billion.”
According to the report, “Total transactions at the nation’s bourse increased by 7.13 per cent from N205.61billion recorded in May 2017 to N220.27billion (about $0.72 billion) in June 2017.”
Also, total transactions for the first half of the year increased by 49.78 per cent from N624.41 billion recorded in 2016 to N935.26 billion in 2017.
Domestic investors outperformed foreign investors by 7.82 per cent. Total domestic transactions increased by 7.53 per cent from N110.42 billion recorded in May 2017 to N118.74 billion in June 2017. Foreign transactions also increased by 6.66 per cent from N95.19 billion to N101.53 billion within the same period.
The NSE said its monthly foreign inflows outpaced outflows, however, foreign inflows decreased by 10.95 per cent from N73.15 billion in May 2017 to N65.93 billion in June 2017 while foreign outflows increased by 38.09 per cent from N22.04 billion in May 2017 to N35.60 billion in June 2017.
Highlighting the domestic composition of transactions on the Exchange between January and June 2017, the NSE said, “The institutional composition of the domestic market decreased by 17.09 per cent from N67.95 billion recorded in May to N56.34 billion in June 2017.”
However, the retail composition increased by 46.92 per cent from N42.47 billion to N62.40 billion within the same period. This indicated a higher participation by retail investors over their institutional counterparts for the first time this year.
Although the Foreign / Domestic trend from 2007 to 2016 showed that foreign transactions had consistently outperformed domestic transactions, domestic transactions marginally outperformed foreign transactions in 2016, accounting for 55 per cent of the total transaction volume in 2016.
Also, foreign transactions further declined by 66.34 per cent from N1, 539billion in 2014 to N518billion in 2016, representing about 45 per cent of total transactions in 2016.
Over the nine year period, domestic transactions significantly decreased by 85.43 per cent from N3, 556billion in 2007 to N634b in 2016. While the Nigerian stock market looks upward, the Nigerian All Share Index has been rallying, up 30.5 per cent year-to-date on account of policy developments that supported the benchmark.