The total investment transactions carried out on the Nigerian Stock Exchange (NSE) has reduced by exactly 28.55 percent when compared to last year.
An analysis of the NSE’s Domestic and Foreign Portfolio Investment (FPI) report for May 2016 indicated that as at May 2015, the total transactions carried out amounted to N145.45 billion, whereas the figure recorded for this year May had dropped to N103.92 billion.
However, further perusal of this report revealed that foreign investors accounted for N40.58 billion while Domestic investors accounted for N63.34 million.
Meanwhile a significant growth was recorded between April to May 2016 as total transactions at the nation’s bourse increased by 55.20 percent from N66.96 billion recorded in April 2016 to N103.92 billion (about $0.53 billion) in May 2016.
But, unsurprisingly, lack of certainty surrounding the nation’s monetary policy on FX and others cautioned Foreign investment which led to domestic investors outperforming their foreign counterparts by 21.90 percent as they increased their participation with 63.75 percent from N38.68 billion in April to N63.34 billion in May 2016 while total FPI transactions increased by 43.49 percent from N28.28 billion in April to N40.58 billion in May 2016.
The report also indicated that in comparison to the same period in 2015, total FPI transactions decreased by 49.13 percent, whilst the total domestic transactions decreased by 3.56 percent. Although monthly foreign inflows slightly outpaced outflows as foreign inflows increased by 44.35 percent from N14.52 billion in April to N20.96 billion in May 2016. Foreign outflows increased by 42.59 percent from N13.76billion to N19.62 billion within the same period.