Domestic investors take shine off foreigners at Nigerian bourse

by | February 1, 2018 12:31 am

Trading figures the Nigerian Stock Exchange (NSE) polled from major custodians and market operators show that transactions by domestic investors surpassed that of foreign investors in 2017.

In 2017, transactions by domestic investors increased to N1.335trillion, while that of foreign investors stood low at N 1.207trillion, according to latest figures from the Broker Dealer Regulation department of the Nigerian bourse. 

Over an eleven (11) year period, domestic transactions have decreased by 62.46percent from N3.556trillion in 2007 to N1.335trillion in 2017.

However, there was a significant increase in 2017 by 111percent from N634 billion recorded in 2016.

Out of the N1.335trillion domestic transactions, local institutional investors accounted for N 937.54billion, while domestic retail investors were accountable for N397.80billion.

The aggregate value of transactions from January to December 2017 increased significantly by 68.25percent, from N1.511 trillion recorded in 2016 to N2.543 trillion in 2017.

Inflow from foreign investors stood at N772.25billion while foreign outflow was N435.31billion.

Month-on-month (mom), total transactions at the nation’s bourse significantly increased by 72.64percent from N278.49 billion recorded in November 2017 to N480.80 billion (about $1.57 billion) in December 2017.

Total foreign transactions increased by 37.56percent from N150.10 billion recorded in November 2017 to N206.48billion in December 2017.

Also, domestic transactions significantly increased by 113.66percent from N128.39 billion in November 2017 to N274.32billion in December 2017.

Total domestic transactions significantly increased by 434.63percent between January and December 2017.

The institutional composition of the domestic market increased by 673.97percent from N31.19billion recorded in January 2017 to N241.40billion in December 2017.

The retail composition also increased by 63.62percent from N20.12 billion in January 2017 to N32.92billion in December 2017.

This indicates a higher participation by institutional investors over their retail counterparts.

Iheanyi Nwachukwu