The Nigerian Stock Exchange’s domestic and foreign portfolio investment report for March 2020, seen by Investogist shows that as at 31 March 2020, total transactions at the nation’s bourse increased by 63.5% from N148.50 billion in February to N242.91 billion in March.
The report shows that while the contribution of Foreign Portfolio Investment to the overall trading figures in March stood at N110.22 billion, 45.3% of total figures, the Domestic Investors contributed N132.69 billion, 54.6% of the total figures.
The Domestic Investor’s contribution for the month of March was made up of N60.23 billion from Retail Investors and N72.46 billion from Institutional Investors.
Encouraged by the low share prices and attractive dividend yields when compared to other financial market instruments like bonds, TBs, CPs etc., Domestic Investors poured money into the market in the month in review.
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On a Month on Month basis, domestic transaction by retail investors jumped by 103.7% to N60.22 billion from the N29.56 billion recorded in February 2020. Similarly, the Institutional composition of the domestic market increased by 52.2% from N47.6 billion in February to N72.46 billion in March 2020.
Of the N110.22 billion from the FPI, N22.49 billion was Inflow while N87.73 billion was outflow. The FPI net outflow between January and March 2020 has been consistently on the increase, up from N46.5 billion and N52.37 billion in January and March respectively.
The total FPI outflow for the year has now hit N186.6 billion, a 50% increase when compared to the same period in 2019, wherein the outflow was at N124.24 billion. The inflow for the Year to Date is currently at N65.27 billion, a drop of 33.1% from the N97.63 billion recorded in the same period last year.
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The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transaction on the Nigerian Stock Exchange (Equities Only).
A historic review of the report shows that in 2008, Domestic Investors trading figures were N3.97 trillion, well higher than the N985 billion recorded in 2019.
The scars of the 2008 global economic meltdown that saw trillions of savings and investments wiped off stock markets, seem not to be disappearing anytime soon.
Written by:
Basil Maduakor
