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Domestic participation on NSE averages 49.27% in seven months

By on September 7, 2013

The Nigerian Stock Exchange (NSE), on Thursday said participation of domestic investors in transactions averaged 49.27 per cent between January to July this year, with July at 37.47 per cent, the lowest for the year.

Within the period, according to the report on the NSE website, foreign portfolio investment accounted for 50.73 per cent within the period, compared with 62.53 per cent in July, or the peak of 64.48 per cent at the end of April.

In 2011 and 2012, foreign investor dominance in the bourse was pronounced, at 66.8 and 61.4 per cent respectively

According to the report “Monthly analysis of transactions on the Exchange for the period ended 31 July 2013,” total transaction for the seven-month period stood at N1.333 trillion. Of this amount, foreign inflow stood at N359.47 billion; while outflow was N316.88 billion. Total foreign transactions for the period stood at N676.35 billion; with domestic transactions at N656.85 billion.

The data also showed that domestic transaction was at its highest- N143.59 billion, while the foreign component stood at N150.24 billion in June, followed by February’s N115.63 billion, as against N75.97 billion foreign; followed by N105.14 billion and N61.97 billion in January.

Further analysis of the July domestic transaction showed that of the total N56.15 billion staked, down from N143.59 billion in the preceding month, 64.83 per cent came from retail investors, as against 33.30 per cent in June.

The NSE explained that foreign portfolio investment outflow between January and July “includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (Equities only).

 

 

[Daily Independent]