Home Companies&Markets Foreign and domestic portfolio investment drive NSE performance to record levels

Foreign and domestic portfolio investment drive NSE performance to record levels

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MON, MAY 04 2020-theG&BJournal-Foreign and domestic portfolio investment have spurred a 63.58% growth in total transactions at the Nigeria Stock Exchange (NSE). While growth in foreign portfolio investment was stellar, it was outperformed by the domestic investors.

According to the latest foreign and domestic portfolio investment report (March 2020) by the NSE, total transactions increased from N148.50 billion (about $484.60 million) in February 2020 to N242.91billion (about $630.04million) in March 2020.

Compared to similar period in 2019, total transactions increased by 120.60%- from N110.11 billion.

In March 2020, the total value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by 10%.

A  further analysis of the total transactions executed between the month under review and February 2020 revealed that total domestic transactions increased by 71.97% from N77.16 billion in February to N132.69 billion in March 2020.

Also, total foreign transactions increased by 54.50% from N71.34 billion (about $232.79 million) to N110.22 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 N29.56 billion in February 2020 to N60.22 billion in March 2020.

Similarly, the institutional composition of the domestic market also increased by 52.23% from N47.60 billion in February 2020 to N72.46 billion in March 2020.

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