Total Transactions on NSE Drop 20% in 2019 to N1.9trn

NSE year-to-date loss

By Dipo Olowookere

**As Domestic Investors Dominate

The total value transactions on the floor of the Nigerian Stock Exchange (NSE) from January 2019 to December 2019 depreciated by nearly 20 percent (precisely by 19.8 percent), data obtained by Business Post has revealed.

In the Nigerian Stock Exchange’s Domestic & Foreign Portfolio Investment Report for December 2019, it was revealed that last year, transactions valued at N1.9 trillion were recorded at the bourse, lower than the N2.4 trillion achieved in 2018.

From the figures, foreign portfolio investors (FPIs) contributed 48.9 percent (N943 billion) of the total trades, while local investors had 51.1 percent (N986 billion). When paired with 2018, FPIs contributed 50.7 percent (N1.22 trillion) to the transactions, higher than the 49.3 percent (N1.19 trillion) added by domestic investors.

Business Post observed that in the last quarter of 2019, the involvement of foreign investors continued to wane from October to November and to December. In October 2019, FPIs recorded transations worth N103.7 billion and in November, it dropped to N86.8 billion, before falling to N63.1 billion last month.

However, at the domestic side, it was wavy as it stood at N59.4 billion in October, N85.8 billion in November and N64.8 billion in December 2019.

In the whole of 2019, foreign inflow into the stock market was N419.1 billion, lower than N576.5 billion in 2018, while the foreign outflow stood at N523.4 billion, lower than N642.7 billion in 2018.

When the participation of domestic investors is analysed, retail investors contributed N477.3 billion to the NSE total transactions for last year, lower than N524.6 billion contributed in 2018, while institutional investors contributed N508.2 billion to the trades, lower than N660.7 billion in 2018.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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