Domestic investors dominate stock market transactions in August by N61.65bn

 

investors1Analysis of trading activities on the floor of the Nigerian Stock Exchange (NSE) has shown that domestic investors outperformed its foreign counterpart at the month of August 2016.

Domestic investors transacted N61.65 billion worth of equity against N56.06 billion of foreign investors in the month of August.

According to the NSE polls trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows at the end of August 2016, total transactions at the nation’s bourse increased by 30.51 per cent from N90.19 billion recorded in July 2016 to N117.71 billion (about $0.39 billion) in August 2016.

Also, total transactions from January to August 2016 decreased by 41.82 per cent from N1.431 trillion recorded within the same period in 2015 to N832.31 billion in 2016.

Domestic investors marginally outperformed their foreign counterparts by about 4.76 per cent. Domestic transactions increased by 34.28 per cent from N45.91 billion in July 2016 to N61.65 billion in August 2016. FPI transactions increased by 26.60 per cent from N44.28 billion in July 2016 to N56.06 billion in August 2016.

Monthly foreign inflows outpaced outflows as foreign inflows increased by 48.10 per cent from N23.43 billion in July to N34.70 billion in August 2016. Foreign outflows also increased by 2.45 per cent from N20.85 billion to N21.36 billion within the same period.

In comparison to the same period in 2015, total FPI transactions decreased by 52.47 per cent from N777.59 billion to N369.56 billion, whilst total domestic transactions decreased by 29.13 per cent from N652.92 billion to N462.75 billion.

Meanwhile, the institutional composition of the domestic market increased by 53.35 per cent from N24.95 billion in July to N38.26 billion in August. The retail composition increased by 11.59 per cent from N20.96 billion in July to N23.39 billion in August. Institutional investors significantly outperformed their retail counterparts in the period under review.