Domestic transactions on Nigeria’s stock exchange hits N742 billion between Jan-April 2022

The total value of domestic transactions on the Nigerian Exchange Limited (NGX) for the first four months of the year 2022 was N742.09 billion against N156.09 billion which was the total foreign transactions carried out during the period under review.

Investigation by Nairametrics showed that the total value of domestic transactions outperformed transactions executed by foreign investors by N586 billion or 375.42%.

As at 30th April 2022, total transactions at the nation’s bourse increased by 11.13% from N185.26 billion (about $445.25 million) in March 2022 to N205.88 billion (about $494.26 million) in April 2022.

The performance of the current month when compared to the performance in April 2021 (N159.93 billion) revealed that total transactions increased by 28.73%.

In April 2022, the total value of transactions executed by Domestic Investors outperformed transactions executed by foreign investors by circa 74%.

Further analysis

  • Further analysis of the total transactions executed between the current and prior month (March 2022) revealed that total domestic transactions increased by 24.96% from N143.09 billion in March to N178.80 billion in April 2022.
  • In contrast, total foreign transactions decreased by 35.78% from N42.17billion (about $101.36million) to N27.08 billion (about $65.01million) between March 2022 and April 2022.
  • Institutional Investors outperformed Retail Investors by 24%. A comparison of domestic transactions in the current and prior month (March 2022) revealed that retail transactions increased by 12.56% from N60.61 billion in March 2022 to N68.22 billion in April 2022.
  • Similarly, the institutional composition of the domestic market increased by 34.07% from N82.48billion in March 2022 to N110.58billion in April 2022.

Key highlights of a decade’s performance

  • Highlights of the performance of the market over the last decade revealed that over a fifteen (15) year period, domestic transactions decreased by 58.80% from N3.556 trillion in 2007 to N1.465 trillion in 2021.
  • Foreign transactions also decreased by 29.38% from N616 billion to N435 billion over the same period.
  • Total domestic transactions accounted for about 77% of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23% of the total transactions in the same period.

What you should know

  • On a monthly basis, Nigerian Exchange Limited (“NGX”) polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows.
  • The Domestic and Foreign Portfolio Investment Report is prepared on a monthly basis by NGX Regulation Limited, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows.
  • These transactions are carried out by Domestic and Foreign investors. Domestic investors are further categorized into Retail and Institutional investors.

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