Domestic Investment On NSE Hits N317.81bn, Jumps 29.7%, Says FPI Report
Domestic investment on the floor of the Nigerian Stock Exchange (NSE) has grown by 20.7 per cent, thereby outperforming its foreign counterparts, according to the Domestic and Foreign Portfolio Investment (FPI) index for November 2020.
“As at 30 November 2020, total transactions at the nation’s bourse increased by 29.77 per cent from N244.90billion (about $634.55million) in October 2020 to N317.81billion (about $813.87million) in November 20206.
Comparing the performance of the month under review with that of November 2019 (N172.52billion) revealed that total transactions increased by 84.22 per cent. In November 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58 per cent
Further analysis of the total transactions executed between the current and prior month (October 2020) revealed that total domestic transactions increased by 53.51% from N163.18billion in October to N250.50billion in November 2020.
According to the data, total foreign transactions dipped by 17.63 per cent from N81.72billion (about $211.75million) to N67.31billion (about $172.38million) between October and November 2020.
The data shows that Institutional Investors outperformed Retail Investors by 16 per cent. A comparison of domestic transactions in the current and prior month (October 2020) revealed that retail transactions increased by 52.10 per cent from N69.94billion in October 2020 to N106.38billion in November 2020. Whilst the institutional composition of the domestic market increased by 54.57 per cent from N93.24billion in October 2020 to N144.12billion in November 2020.
The report further highlights the performance of the market over the last decade. Over a 13 year period, domestic transactions decreased by 72.30 per cent from N3.556 trillion in 2007 to N985 billion in 2019 whilst foreign transactions increased by 53.08 per cent from N616bn to N943bn over the same period.
“Total domestic transactions accounted for about 51 per cent of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49 per cent of the total transactions in the same period.
” The actual performance referenced 2020A (2020 Actual) shows that total foreign transactions carried out year till date (YTD) is about N659.28billion, whilst total domestic transactions YTD is about N1.239 trillion.
The Nigerian Stock Exchange’s 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 (FPI) flows.
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