Foreign portfolio investment transactions in the country’s stock market rose by 59.81 per cent by the first half of this year compared to the corresponding period of last year.
The FPI transactions were increased from N269.22bn to N430.23bn in the 12-month period, market data of the Nigerian Stock Exchange made available to our correspondent on Wednesday showed.
Similarly for the period under review, the total domestic transactions increased by 42.19 per cent from N355.19bn to N505.03bn.
Thus, total transactions at the nation’s bourse increased by 7.13 per cent from N205.61bn recorded in May to N220.27bn (about $0.72bn) in June this year. Also, total transactions for the first half of the year increased by 49.78 per cent from N624.41bn recorded in the same period of 2016 to N935.26bn.
Domestic investors outperformed foreign investors by 7.82 per cent. The total domestic transactions increased by 7.53 per cent from N110.42bn recorded in May 2017 to N118.74bn in June 2017. Foreign transactions also increased by 6.66 per cent from N95.19bn to N101.53bn within the same period.
Monthly foreign inflows outpaced outflows. However, foreign inflows decreased by 10.95 per cent or N65.93bn in June from N73.15bn in May, while foreign outflows increased by 38.09 per cent from N22.04bn to N35.60bn in the same period.
For the domestic composition of transactions on the Exchange between January and June, the institutional composition of the domestic market decreased by 17.09 per cent from N67.95bn recorded in May to N56.3bn in June.
However, the retail composition increased by 46.92 per cent from N42.47bn to N62.40bn within the period. This indicated a higher participation by retail investors over their institutional counterparts for the first time this year.
Since 2011, foreign transactions have consistently outperformed domestic transactions. However, domestic transactions marginally outperformed foreign transactions in 2016, accounting for 55 per cent of the total volume that year.
Also, foreign transactions declined by 66.34 per cent from N1.539tn in 2014 to N518bn in 2016, representing about 45 per cent of total transactions last year.
Over the nine-year period, domestic transactions had significantly decreased by 85.43 per cent from N3.556btn in 2007 to N634bn in 2016.
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