Nigerian investors outperform their offshore counterparts by 58% as local equity market surges
By Samuel Bakole
As the local equity market sustains its stellar performance year-to-date, offshore investors are largely absent to partake in the over 45.7 percent gain recorded so far this year by the market.
Unlike foreign investors, their local counterparts are the one left to savour the huge gained by the market this year as they increased their investment in the local bourse.
A report on the domestic and foreign portfolio investment report by the Nigerian Stock Exchange (NSE) published on Wednesday showed that local investment in the market was 85 percent higher than their offshore counterpart in November.
“In November 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58 percent,” the NSE said in its report.
“A further analysis of the total transactions executed between the current and prior month (October 2020)
revealed that total domestic transactions increased by 53.51 percent from N163.18 billion in October to N250.50billion
in November 2020.
“Total foreign transactions, however, decreased by 17.63 percent from N81.72 billion (about $211.75 million) to N67.31billion (about $172.38 million) between October and November 2020,” the report stated.
The local bourse said by November 30, total transactions at the nation’s bourse increased by 29.77 percent from N244.90 billion (about $634.55million) in October 2020 to N317.81billion (about $813.87million) in November 2020.
“The performance of the current month, when compared to the performance in November 2019 (N172.52billion), revealed that total transactions increased by 84.22 percent.
The report also showed that Institutional Investors outperformed Retail Investors by 16 percent in the period under review.
A comparison of domestic transactions in November compared with October also showed that retail transactions increased
by 52.10 percent from N69.94 billion in October 2020 to N106.38 billion in November 2020.
“Whilst the institutional composition of the domestic market increased by 54.57 percent from N93.24 billion in October 2020 to N144.12 billion in November 2020.”