By MICHAEL EBOH
The secondary segment of the Nigerian capital market recorded a total Foreign Portfolio Investment, FPI, flow of N570.8 billion in nine months, from January and September 2012.
According to data released by the Nigerian Stock Exchange, NSE on its website, the amount is broken down into total inflow of N318.55 billion and total outflow of N252.24 billion.
The report disclosed that the NSE, between January and December, 2011 recorded an FPI inflow of N512.72 billion, outflow of N335.15 billion and a total flow of N847.9 per cent.
The total FPI flow of N570.8 billion in the nine months period of 2012 is 32.68 per cent less than the FPI of N847.9 billion recorded in the NSE in 2011, the outflow figure for 2012 is 24.74 per cent less than the total figure for 2011, while the total flow for the nine months 2012 figure is 32.68 per cent less than the total figure for 2011.
A breakdown of foreign participation in the capital market in the last five years, as contained in the report, shows that in 2007, total FPI inflow stood at N256.03 billion, outflow stood at N359.6 billion and a total flow of N615.63 billion.
In 2008, total FPI flow stood at N787.4 billion, represented by inflow of N153.5 billion and outflow of N633.93 billion. In 2009, the NSE recorded FPI flow of N424.6 billion, comprising N229 billion and N195.6 billion inflow and outflow respectively.
In 2010, a total flow of N577.3 billion was recorded in the NSE, comprising inflow of N382.1 billion and N195.24 billion FPI outflow.
The report further revealed that the NSE recorded significant increase in local investors’ participation, rising to 40.2 per cent between January and September 2012, compared to 33.2 per cent participation recorded in the whole of 2011.
According to the NSE, with a total flow of N570.8 billion, foreigners accounted for 59.8 per cent of the total market transaction between January and September 2012, valued at N954.1 billion, while local investors accounted for 40.2 per cent of the total transaction.
A breakdown of local and foreign investors’ participation in the market, shows that in 2007, local investors accounted for 85.2 per cent of transactions while foreign investors accounted for 14.8 per cent; in 2008, local investors accounted for 83.5 per cent of the total transaction, while foreign investors accounted for 16.5 per cent.
In 2009, foreign investors accounted for 31 per cent of the total transaction while local investors accounted for 69 per cent; in 2010, local investors’ participation dropped to 63.9 per cent, while foreigners accounted for 36.1 per cent.
Local investors’ participation dipped further in 2011 to 33.2 per cent while foreign investors accounted for 66.8 per cent of the total market transactions.
Continuing, the NSE said, “However, between January and August 2012, we observed that domestic investors have increased their share of the market from 33.2 per cent in 2011 to 37.3 per cent in 2012. Domestic investors can be categorized into either institutional or retail investors.”
“In January 2012, the exchange reported that foreign investors accounted for 81 per cent of total inflows (purchases) on the market during 2011. During the same year, foreign investors accounted for 53 per cent of total outflows (sales) recorded on the market. Consequently, total transactions by foreign investors were N847.9 billion or 67 per cent out of total transaction of N1.3 trillion.