November 28, 2020
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Domestic investors continue to dominate transactions on NSE~Report

By on November 2, 2020 0 76 Views

By Samuel Bankole

Transactions on the Nigerian Stock Exchange (NSE) continue to be dominated by domestic investors as their foreign portfolio counterparts reduce their holdings on the local bourse.

In its latest report on Domestic and Foreign Portfolio Investment, the NSE said local investors pooled N825.94 billion transactions in the first nine months of the year in the equity market, their foreign counterparts invested N510.25 billion in the same period.

Also, data from last year showed that Domestic investors accounted for 51 percent of trading on the local bourse, leaving 49 percent of trading to their foreign portfolio counterparts.

On a month-on-month basis, total transactions at the nation’s bourse increased by 42.90 percent from N94.45 billion (about $244.27 million) in August 2020 to N134.97 billion (about
$349.85million) in September 2020.

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The performance of the current month when compared to the performance in September 2019 (N141.45billion) revealed that total transactions decreased by 4.58 percent.

In September 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 40 percent.

A further analysis of the total transactions executed between the current and prior month (August 2020) revealed that total domestic transactions increased by 71.12 percent from N55.47 billion in August to N94.92 billion in September 2020.

Total foreign transactions also increased by 2.74 percent from N38.98 billion (about $100.81 million) to N40.05 billion (about $103.81 million) between August and September 2020.

Institutional Investors outperformed Retail Investors by 24 percent. A comparison of domestic transactions in the current and prior month (August 2020) revealed that retail transactions increased by 34.12 percent from N26.61 billion in August 2020 to N35.69 billion in September 2020.

“Whilst the institutional composition of the domestic market increased by 105.23 percent from N28.86 billion in August 2020 to N59.23 billion in September 2020′” the local bourse stated in the report.

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