The value of the total transaction on the Nigerian Stock Exchange (NSE) continues to increase with the highest value recorded in November, amounting to N317.81 billion, an increase of 29.8% from the October value of N244.90 billion – the second largest year to date (YTD).
YTD, the total transaction on NSE is valued at N1,898.91 billion, a slight increase of 5.49% (N98.76 million) from the N1,800.15 recorded in the same period in 2019.
The gap between the domestic transactions and foreign transactions on the exchange widened in November, as domestic transactions continue to dominate on the Exchange. This is according to the NSE domestic and foreign portfolio investment report for November 2020.
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The November 2020 transaction was made up of 78.82% (N250.50 billion) domestic an increase of 53.15% from N163.18 recorded in October 2020 and 21.18% (N67.31 billion) foreign transaction, a decline of 17.63% from the N81.72 billion recorded in October 2020.
“The performance of the current month, when compared to the performance in November 2019 (N172.52billion), revealed that total transactions increased by 84.22%. In November 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 58%.”
Foreign outflow declined in November to N41.77 billion from N56.44 billion recorded in October. October value is the second-largest outflow YTD (January to November) behind the March outflow of N87.73 billion. YTD foreign outflow stood at N433.15 billion.
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Foreign inflow slightly rose to N25.54 billion in November 2020 from N25.28 billion recorded in October 2020. YTD foreign inflow stood at N226.13 billion
Although Retail Investors’ transaction increased to N106.38 billion in November 2020 – the largest year to date it was still outperformed by Institutional Investors, with a record N144.12 billion transactions in 2020 2020 – its largest YTD.
“A comparison of domestic transactions in the current and prior month (October 2020) revealed that retail transactions increased by 52.10% from N69.94billion in October 2020 to N106.38billion in November 2020. Whilst the institutional composition of the domestic market increased by 54.57% from N93.24billion in October 2020 to N144.12billion in November 2020.
Historical Analysis
According to report, “Over a thirteen (13) year period, domestic transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.”
“Total domestic transactions accounted for about 51% of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49% of the total transactions in the same period.”
“The actual performance referenced 2020A (2020 Actual) shows that total foreign transactions carried out year till date (YTD) is about N659.28billion, whilst total domestic transactions YTD is about N1239.62billion.”
By: Ifunanya Ikueze
