NSE: Foreign Transactions Drops by 49.51% in 2016
By Modupe Gbadeyanka
Latest data released by the Nigerian Stock Exchange (NSE) on Wednesday, February 1, 2017, has revealed that total foreign transactions decreased by 49.51 percent in 2016 from N1,025 billion recorded at the end of 2015 to N517.55 billion at the end of 2016.
It was also disclosed that domestic transactions decreased by 28.02 percent from N880.56 billion to N633.82 within the same period.
However, in the data obtained by Business Post, it was gathered that total transactions at the nation’s bourse increased by 48.91 percent from N64.39 billion recorded in November 2016 to N95.88 billion in December 2016, while total transactions from January to December 2016 dropped significantly by 39.58 percent from N1,905.63 billion recorded within the same period in 2015 to N1,151.38 billion at the end of 2016.
The NSE noted that foreign transactions have consistently outperformed domestic transaction since 2011.
However, domestic transactions slightly out-performed foreign transactions in 2016 accounting for 55 percent of the total transactions in 2016.
In the same vein, foreign transactions have further declined by 66.34 percent from N1.539 billion in 2014 to N518 billion in 2016 which represents about 45 percent of total transactions in 2016.
Over the nine-year period, domestic transactions have significantly decreased by 85.43 percent from N3.556 billion in 2007 to N634 billion in 2016.
Giving an analysis of the domestic composition of transactions on the NSE between January and December 2016, it was gathered that the total domestic transactions increased by 27.32 percent between January and December.
The institutional composition of the domestic market increased by 63.16 percent from N21.85 billion in January to N35.65 billion in December, while the retail composition fell by 14.14 percent from N18.88 billion to N16.21 billion within the same period.
Also, institutional investors outperformed their retail counterparts for the most of 2016.