Domestic & Foreign Portfolio Participation in Equity Trading –August, 2015

On a monthly basis, the Nigerian Stock Exchange (NSE) polls trading figures from major custodians and market operators on their foreign portfolio investments (FPI). The table (1) above shows an analysis of transactions on the NSE at the end of August 2015. 

Domestic Vs Foreign 2015
Monthly FPI transactions at the nation’s bourse decreased to ₦81.13 billion (about $0.41 billion) in August 2015 from ₦107.47 billion (about $0.55 billion) at the end of July 2015; representing a decrease of 24.51%.

Domestic investors conceded about 11.38% of trading to foreign investors compared to the 25.82% they conceded in the previous month as Domestic transactions increased from 37.09% to 44.31% while FPI transactions decreased from 62.91% to 55.69% over the same period.

Foreign portfolio investors’ inflows accounted for 22.69% of total transactions while the outflows accounted for 33.00% of the total transactions in August 2015.

In comparison to the same period in 2014, total FPI transactions decreased by 26.51%, whilst the total domestic transactions increased by 156.39%. FPI outflows outpaced inflows which was consistent with the same period in 2014.

Overall, there was a 7.46% increase in total transactions in comparison to the same period in 2014.

 (1) Methodology –The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, whilst the FPI inflow includes purchase transactions on the Nigerian Stock Exchange (Equities only).
(2) The July 2015 and August 2014 transactions are included for comparison to the August 2015 transactions.