By Peter Egwuatu

LAGOS—Domestic investors on the Nigerian Stock Exchange, NSE, for the first time in six years, outperformed foreign investors by 6.78 per cent in terms of portfolio investment.

Figures from the NSE showed that in February 2017, domestic investors’ transaction in the market was 53.39 per cent, while that of foreign investors was 46.61 per cent.

But the NSE had reported that domestic transactions decreased by 22.88 per cent to N39.57 billion in February 2017 from N51.31 billion recorded in January 2017, while foreign transactions also decreased by 21.52 per cent to N34.54 billion from N44.01 billion within the same period.

Total transactions at the NSE in February 2017 decreased by 22.25 per cent to N74.11 billion, from N95.32 billion recorded in January 2017.

Also, the cumulative transactions from January to February decreased by 15.86 per cent to N169.43 billion in 2017, from N201.37 billion recorded in 2016.

Statistics from the NSE showed that there was a 28.79 per cent decrease in foreign inflows to N16.10 billion in February 2017 from N22.61 billion in January 2017. Foreign outflows also decreased by 13.83 per cent to N18.44 billion in February 2017 from N21.40 billion in January 2017.

Further highlights show the institutional composition of the domestic market decreased by 21.93 per   cent to N24.35 billion in February 2017, from N31.19 billion recorded in January . The retail composition also decreased by 24.35 per cent to N15.22 billion from N20.12 billion within the same period. This indicates more active participation by institutional investors over their retail counterparts in the period under review.

According to information from the NSE, since 2011, foreign transactions have consistently outperformed domestic transactions.

However, the NSE noted that domestic transactions slightly outperformed foreign transactions in 2016, accounting for 55 per cent of the total transaction volume in 2016. “ Also, foreign transactions have further declined by 66.34 per cent   to N518billion in 2016,   from N1,539 billion   in 2014,   representing circa 45 per cent   of total transactions in 2016. Over the nine (9) year period, domestic transactions have significantly decreased by 85.43 per cent from N3, 556billion   in 2007 to N634billion in 2016” NSE stated.






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