Current statistics from the Nigerian Stock Exchange (NSE) has shown that Foreign Portfolio Investments (FPIs) last year hit ₦1.208 trillion, accounting for about 48 per cent of total transactions.
The data also showed that FPI, which was ₦1.539 trillion in 2014, however, shrank to ₦518 billion in 2016, but increased significantly by 133 per cent in 2017.
Further analysis of the data also showed that over an 11-year period, domestic transactions have decreased by 62.46 per cent from ₦3.556 trillion in 2007 to ₦1.335 trillion in 2017
However, there was a significant increase in 2017 by 111 per cent from ₦634 billion recorded in 2016.
The data showed that total transactions at the nation’s bourse significantly increased by 72.64 per cent from ₦278.49 billion recorded in November 2017 to ₦480.80 billion (about $1.57 billion) the next month.
The aggregate value of transactions from January to December 2017 increased significantly by 68.25 per cent from ₦1.511 trillion recorded in 2016 to ₦2.543 trillion in 2017.
Total FPI increased by 37.56 per cent from ₦150.10 billion recorded in November 2017 to ₦206.48 billion in December 2017.
Domestic Transactions significantly increased by 113.66 per cent from ₦128.39 billion to ₦274.32 billion within the same period.
The FPI outflow includes sales transactions or liquidation of portfolio investments through the stock market, while the FPI inflow includes purchase transactions on the NSE (equities only).Total domestic transactions significantly increased by 434.63 per cent between January and December.
The institutional composition of the domestic market increased by 673.97 per cent, from ₦31.19 billion in January to ₦241.40 billion in December.
The retail composition also increased by 63.62 per cent from ₦20.12 billion to ₦32.92 billion within the same period.
This indicates a higher participation by institutional investors over their retail counterparts. Since 2011, FPIs have consistently outperformed domestic transactions.
However, domestic transactions marginally outperformed foreign transactions in 2016 and 2017, accounting for 52 per cent of the total transaction value in 2017.