By Chinwendu Obienyi
The value of domestic cash inflow on the floor of the Nigerian Stock Exchange (NSE) grew by N98.59 billion as against N16.73 billion recorded by foreign inflows in January 2021.
This was contained in the NSE’s Domestic and Foreign Portfolio Investment Report released to the investing community yesterday. The report stated that as at January 31, 2021, total transactions at the nation’s bourse decreased by 13.66 per cent from N269.24 billion(about $687.06million) in December 2020 to N232.46 billion (about $590.82million) in January 2021.
The performance of the current month when compared to the performance in January 2020 (N235.46 billion) revealed that total transactions fell marginally by 1.27 per cent. Furthermore, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 60 per cent.
Analysis of the total transactions executed between the current and prior month (December 2020) revealed that total domestic transactions decreased by 7.21 per cent from N199.32billion to N184.94billionin January 2021. Additionally, total foreign transactions decreased by 32.04 per cent from N69.92 billion (about $178.44 million) to N47.52 billion (about $120.78 million) between December 2020 and January 2021.
A further breakdown of the report revealed that institutional investors outperformed retail investors by 28 per cent.
A comparison of domestic transactions in the current and prior month (December2020) revealed that retail transactions increased by 10.16 per cent from N61.22 billion in December2020 to N67.44 billion in January 2021.
The institutional composition of the domestic market also decreased by 14.91 per cent from N138.09 billion in December 2020 to N117.50 billion in January 2021 while retail participation stood at 36 per cent as against institutional participation (64 per cent).