On a monthly basis, the Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows.
According to the report made available as at press time, as at 31 December 2021, total transactions at the nation’s bourse decreased by 19.31 per cent from N196.14 billion (about $472.54 million) in November 2021 to N158.26 billion (about $363.81 million) in December 2021.
The performance of the current month when compared to the performance in December 2020 (N269.24 billion) revealed that total transactions decreased by 41.22 per cent.
In December 2021, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 56 per cent as shown in figure 1 below.
A further analysis of the report revealed that the total transactions executed between December 2021 and prior month (November 2021) showed that total domestic transactions decreased by 2.88 per cent from N126.58 billion in November to N122.94 billion in December 2021.
In contrast, the total foreign transactions decreased more sharply by 49.22 per cent from N69.56 billion (about $167.58 million) to N35.32 billion (about $81.20 million) between November 2021 and December 2021 respectively.
Analyzing the domestic transactions, Figure 4 below shows that Institutional Investors outperformed Retail Investors by 38 per cent. A comparison of domestic transactions in the current and prior month (November 2021) revealed that retail transactions decreased by 17.07 per cent from N45.51 billion in November 2021 to N37.74 billion in December 2021.
However, the institutional composition of the domestic market increased by 5.09 per cent from N81.07 billion in November 2021 to N85.20 billion in December 2021.
The historical analysis of the domestic and foreign transactions reflected in the data in figure 7 below highlights the performance of the market over the last decade. Over a fourteen (14) year period, domestic transactions decreased by 58.80 per cent from N3.556 trillion in 2007 to N1.465 trillion in 2021 whilst foreign transactions also decreased by 29.38 per cent from N616 billion to N435 billion over the same period.
Total domestic transactions according to the report, accounted for about 77 per cent of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23 per cent of the total transactions in the same period.
The transaction data for 2021 shows that total foreign transactions amounts to N434.50 billion, whilst total domestic transactions stands at N1.465 trillion.
