Participation in equities trading increased in November, the first time in three months.
According to the latest Nigerian Stock Exchange’s (NSE) Domestic and Foreign Portfolio Investment (FPI) report, total transactions at the bourse slightly increased by 0.56 percent from N64.03 billion recorded in October 2016 to N64.39 billion (about $0.21 billion) with the foreign exchange rate as at 30 November 2016 pegged at N304.50.
Analysis of transactions for the period ended 30 November 2016, showed that total transactions from January to November 2016 decreased significantly by 41.20 percent from N1, 795.07 billion recorded within the same period in 2015 to N1, 055.50 billion in 2016.
FPI transactions have been on a downward trend from August 2016. In November 2016, domestic investors outperformed their foreign counterparts by about 9.46 percent. Domestic transactions increased by 7.47 percent from N32.79 billion in October 2016 to N35.24 billion in November 2016.
FPI transactions decreased, by 7.17 percent from N31.24 billion in October 2016, to N29.15 billion in November 2016.
Monthly foreign outflows outpaced inflows as foreign inflows decreased by 22.17 percent from N18.67 billion in October to N14.53 billion in November 2016. Foreign outflows increased by 16.31 percent from N12.57 billion to N14.62 billion within the same period.
The institutional composition of the domestic market increased by 0.56 percent from N19.47b in October to N19.58b in November. The retail composition also increased by 17.57 percent from N13.32b to N15.66b within the same period. Institutional investors have consistently outperformed their retail counterparts since June 2016.
On a monthly basis, NSE polls trading figures from major custodians and market operators on their FPI flows.
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange for Equities only.