Stock market records consistent increase in FPI net outflow in Q1 2020
The Nigerian Stock Exchange has revealed in a report that domestic investors’ transaction on the local bourse was more than foreign portfolio activities.
In NSE domestic and foreign portfolio report for March, it was noted that there was consistent increase in the FPI net outflow between January and March, 2020.
The report show that actual performance shows that total foreign transactions carried out year till date is about ₦251.87 billion.
It recognised that this was below total domestic transactions which settled at about ₦374.98 billion.
In January, foreign inflow was ₦23.81 billion as against ₦46.5 billion outflow reported in the period.
Also, in February, the market recorded ₦18.97 billion inflow, this happened just as outflow increased to ₦52.37 billion.
By March, foreign outflow grew to ₦87.73 billion compare to an inflow of ₦22.49 billion in the same period.
According to the report, as at 31 March 2020, total transactions increased 63.58% from ₦148.50 billion (about $484.60 million) in February 2020 to ₦242.91 billion (about $630.04 million) in March 2020.
NSE noted that the performance of the current month when compared to the performance in March 2019 (₦110.11 billion) revealed that total transactions increased by 120.60%.
In March 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by about 10%
A further analysis of the total transactions executed between the current and prior month (February 2020) revealed that total domestic transactions increased by 71.97% from ₦77.16 billion in February to ₦132.69 billion in March 2020.
Also, total foreign transactions increased by 54.50% from ₦71.34 billion (about $232.79 million) to ₦110.22 billion (about $285.89 million) between February and March 2020.
The value of domestic transactions executed by Institutional Investors outperformed Retail Investors by 10%.
A comparison of domestic transactions in the current and prior month (February 2020) revealed that retail transactions increased significantly by 103.72% from ₦29.56 billion in February 2020 to ₦60.22 billion in March 2020.
Similarly, the institutional composition of the domestic market increased by 52.23% from ₦47.60 billion in February 2020 to ₦72.46 billion in March 2020.
Over a thirteen (13) year period, domestic transactions decreased by 72.30% from ₦3.556 trillion in 2007 to ₦985 billion in 2019.
However, foreign transactions increased by 53.08% from ₦616 billion to ₦943 billion over the same period.
Total domestic transactions accounted for about 51% of the total transactions carried out in 2019.
Meanwhile, foreign transactions accounted for about 49% of the total transactions in the same period.
NSE records consistent increase in FPI net outflow in Q1 2020
