The Nigerian Stock Exchange trading figures from market operations decreased by 7.40% from N128.67 billion recorded in April 2020 to N119.15 billion in May 2020. This is according to the Domestic & Foreign Portfolio Investment report for May 2020 released by the Nigerian Stock Exchange and seen by Investogist.
The performance in May 2020 when compared to the performance in May 2019 (N221.13 billion) revealed that total transactions decreased by 46.12%.
Fig 1: Foreign and Domestic Portfolio Investment trend; January 2019 – May 2020
Of the total trading figures, Domestic Investors executed 70.42% of all transactions while Foreign Investors executed 29.58% of the of the transactions.
A further analysis of the total transactions executed between the current and prior month (April 2020) revealed that total domestic transactions increased by 11.15% from N75.49billion in April to N83.91 billion in May 2020. However, total foreign transactions decreased by 33.73% from N53.18 billion (about $137.37million) to N35.24 billion (about $90.89million) between April and May 2020.
A comparison of domestic transactions in the current and prior month (April 2020) revealed that retail transactions increased by 4.38% from N40.42 billion in April 2020 to N42.19 billion in May 2020. Similarly, the institutional composition of the domestic market increased by 18.96% from N35.07 billion in April 2020 to N41.72 billion in May 2020.
Fig 2: Foreign Inflow & Outlow – Domestic Retail and Institutional Trends
As the report shows, Foreign Investors participation in the market continued its decline, showing the negative perception associated with the Nigerian economy.