Nigeria’s domestic, foreign portfolio investment drop by 13.66%

Trading figures from Nigerian market operators on the Domestic and Foreign Portfolio Investment flows declined in January 2021 by 13.66 per cent.

This was contained in ‘The Nigerian Stock Exchange’s Domestic and Foreign Portfolio Investment Report’ for January 2021 released on Monday.

The report showed that, as at January 31, 2021, total transactions at the nation’s bourse decreased by 13.66 per cent from N269.24bn in December 2020 to N232.46bn in January 2021.

Relative to the performance in the corresponding month of January 2020, total transactions decreased marginally by N3bn (1.27 per cent).

According to the report, domestic investors out-performed their foreign counterparts by 60 per cent in the total value of transactions executed in the review month.

A further analysis of the transactions executed between December 2020 and January 2021 revealed that total domestic transactions decreased by 7.21 per cent from N199.32bn to N184.94bn in January 2021. Total foreign transactions decreased by 32.04 per cent to N47.52bn. Also, institutional investors out-performed retail investors by 28 per cent.

A comparison of domestic transactions in the review months revealed that retail transactions increased by 10.16 per cent to N67.44bn in January 2021.

The institutional composition of the domestic market also decreased by 14.91 per cent to N117.50bn in January 2021.

Over the last 14 years, domestic transactions decreased by 59.54 per cent from N3.556tn in 2007 to N1.439tn in 2020. Foreign transactions increased by 18.45 per cent from N616bn to N729bn.

Total domestic transactions accounted for about 74 per cent of the total transactions carried out in 2020, while foreign transactions accounted for about 26 per cent in the same period.

The report added that data for 2021 showed that total foreign transactions were approximately N47.52bn, while total domestic transactions were put at N184.94bn.