By Nse Anthony-Uko
(Sundiata Finance) The aggregate value of equity transactions recorded from January to July 2017 increased by 58.05 per cent to N1.129 trillion, up from N714.60 billion in same period of 2016, analysis of transactions for the period ended July 31, 2017 shows.
Out of this figure, domestic investors accounted for N638.68 billion or 56.55 per cent; while foreign investors accounted for N490.73 billion or 43.45 per cent, according to trading figures from major custodians and market operators.
In the same seven-month period, foreign inflows rose to N254.41 billion as against N144.72billion in same period of 2016. Foreign outflows in the same period in 2017 increased to N236.32billion from a low of N168.77billion in seven month to July 2016.
Trading data at the Nigerian Stock Exchange (NSE) on domestic and foreign portfolio participation in equity trading for last month show total transactions at the nation’s bourse decreased by 11.86 per cent from N220.27billion recorded in June 2017 to N194.15billion in July 2017.
In the month of July, domestic investors outperformed foreign investors by 37.68 per cent. Total domestic transactions increased by 12.56 per cent from N118.74billion recorded in June 2017 to N133.65billion in July 2017 while foreign transactions decreased by 40.41 per cent from N101.53 billion to N60.50 billion within the same period.
Monthly foreign inflows outpaced outflows. However, foreign inflows decreased by 41.70 per cent from N65.93 billion in June 2017 to N38.44billion in July 2017. Foreign outflows also decreased by 38.03 per cent from N35.60billion in June 2017 to N22.06billion in July 2017.
In comparison to the same period in 2016, total Foreign Portfolio Investment (FPI) transactions from January to July 2017 increased by 56.54 per cent from N313.49billion to N490.73, while the total domestic transactions increased by 59.23 per cent from N401.10billion to N638.68billion. The institutional composition of the domestic market increased by 41.82 per cent from N56.34 billion recorded in June to N79.90 billion in July 2017.
However, the retail composition decreased by 13.86 per cent from N62.40 billion to N53.75billion within the same period. This indicates a higher participation by institutional investors over their retail counterparts.