Equities transaction depressed by N21.21bn in February

 

TRANSACTIONS in equity segment of the Nigerian Stock Exchange (NSE) at the end of February 2017 dropped by N21.21 billion.

The NSE polls trading figures from major custodians and market operators on their Foreign Portfolio Investment (FPI) flows shows that, total transactions at the nation’s bourse decreased by 22.25 percent from N95.32 billion recorded in January 2017 to N74.11 billion in February 2017.

Also, the cumulative transactions from January to February decreased by 15.86 percent from N201.37 billion recorded in 2016 to N169.43 billion in 2017.

In February 2017, domestic investors outperformed foreign investors by 6.78 percent as domestic investors traded N39.57 billion over N34.54 billion traded by foreign counterpart.

Domestic transactions decreased by 22.88 percent from N51.31 billion recorded in January 2017 to N39.57 billion in February 2017 whilst foreign transactions also decreased by 21.52 percent from N44.01 billion to N34.54 billion within the same period.

There was a 28.79 percent decrease in foreign inflows from N22.61 billion in January 2017 to N16.10 billion in February 2017. Foreign outflows also decreased by 13.83 percent from N21.40 billion in January 2017 to N18.44 billion in February 2017.

The domestic composition of transactions on the bourse between January and February 2017 indicated that, the institutional composition of the domestic market decreased by 21.93 percent from N31.19 billion recorded in January to N24.35 billion in February 2017.

The retail composition also decreased by 24.35 percent from N20.12 billion to N15.22 billion within the same period. This indicates more active participation by institutional investors over their retail counterparts in the period under review.

Meanwhile, since 2011, foreign transactions have consistently outperformed domestic transactions. However, domestic transactions slightly outperformed foreign transactions in 2016, accounting for 55 percent of the total transaction volume in 2016.

Also, foreign transactions have further declined by 66.34 percent from N1.539 trillion in 2014 to N518 billion in 2016, representing circa 45 percent of total transactions in 2016.

Over the nine year period, domestic transactions have significantly decreased by 85.43 percent from N3.556 trillion in 2007 to N634 billion in 2016.