By Chinwendu Obienyi
The total transactions by domestic investors on the floor of the Nigerian Exchange Limited (NGX) has grown to N1.729 trillion as against N349.59 billion recorded by foreign investors in ten months of 2022.
According to the Domestic and Foreign Portfolio Report of the Nigerian Exchange (NGX) for the month of October 2022, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 48 per cent.
The report also revealed that total transactions at the nation’s bourse increased by 34.42 per cent from N81.90 billion (about $248.50million) in September 2022 to N110.09 billion (about $64.45million) in October 2022.
The performance of the current month when compared to the performance in October 2021 (N213.07billion) revealed that total transactions decreased by 48.33 per cent.
Furthermore, domestic participation grew by 74 per cent as against 26 per cent recorded by foreign participation while domestic inflows and outflows stood at N37.04 billion and N44.50 billion respectively in October 2022.
Further analysis of the total transactions executed between the current and prior month (September 2022) revealed that total domestic transactions increased significantly by 31.03 per cent from N62.23 billion in September to N81.54 billion in October 2022.
Similarly, total foreign transactions increased by 45.14 per cent from N19.67 billion (about $44.93million) to N28.55 billion (about $64.45million) between September 2022 and October 2022.
A comparison of domestic transactions in the current and prior month (September 2022) revealed that retail transactions decreased by 29.64 per cent from N34.18billion in September to N24.05 billion in October 2022. However, the institutional composition of the domestic market increased by 104.96 per cent from N28.05 billion in September 2022 to N57.49billion in October 2022.
Commenting on the development, analysts at Cordros Research, stated that despite total transactions in the local bourse reversing the previous month’s trend, the print is significantly below the 2022 average (N207.90 billion).
According to them, this is due to the higher yields in the fixed-income market, lingering FX liquidity constraints and heightened global uncertainties.
