Foreign outflows from the Nigerian Stock Exchange (NSE) increased by 125.84 per cent from N33.05 billion to N74.64 bn in the space of just one month.
This was revealed in the NSE’s January 2018 report on ‘Domestic & Foreign Portfolio Participation in Equity Trading.’
The increase was recorded between December 2017 and January 2018.
The report shows that Foreign inflows decreased by 47.10 per cent from N173.43 bn in December 2017 to N91.75bn in January 2018.
In the review period, foreign investors conceded about 15.64 per cent of trading to domestic investors.
Total foreign transactions decreased by 19.42 per cent from N206.48bn recorded in December 2017 to N166.39bn in January 2018; and domestic transactions also decreased by 16.87 per cent from N274.32bn to N228.05bn within the same period.
Overall, total transactions decreased by 18 per cent from N480.80bn recorded in December 2017 to N394.44bn (about $1.29bn) in January 2018.
Since 2011, foreign transactions have consistently outperformed domestic transactions.
However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.
Also, foreign transactions which was N1.539trn in 2014 declined to N518bn in 2016, but increased significantly by 133 per cent to N1.208trn in 2017 thereby accounting for about 48 per cent of total transactions in 2017.
Over an eleven (11) year period, the NSE reveal that domestic transactions have decreased by 62.46 per cent from N3.556trn in 2007 to N1.335t in 2017. However, there was a significant increase in 2017 by 111 per cent from N634bn recorded in 2016.
The domestic composition of investors on the NSE indicates a higher participation by Institutional investors over their retail counterparts. The institutional investors accounted for 53 per cent of the market, while retail composition accounted for 47 per cent within the review period.
Meanwhile a year on year appraisal of market performance shows the total transactions in January 2018 increased by 313.81 per cent, as against figures recorded in the same period of 2017.
The growth was from N95.32 bn in January 2017 to N394.44bn in January 2018.