The total value of domestic transactions on the Nigerian Exchange Limited (NGX) in January 2023 was N170.20 billion against N24.90 billion during the comparable period last year. 

This is contained in the January domestic and foreign portfolio investment report released by the Nigerian Exchange Limited and obtained by Nairametrics. 

Further analysis showed that the total value of domestic transactions outperformed transactions executed by foreign investors by N145.3 billion or 583.5%. 

This follows low sentiments on the part of foreign investors resulting from the build-up to the 2023 election and other economic headwinds facing Nigeria. 

Note that investors’ sentiment is usually weak pre-election period as they seek to reduce their market exposure when elections draw closer.  

January transactions: As of 31 January 2023, total transactions at the nation’s bourse increased by 38.66% from N140.70 billion (about $305.15million) on December 3 2022 to N195.10 billion (about $422.94million) in January 2023.  

The performance of the current month when compared to the performance in January 2022 (N323.38 billion) revealed that total transactions decreased by 39.66%. In January 2023, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 74% 

Further analysis of the total transactions executed between the current and prior month (December 2022) revealed that total domestic transactions increased significantly by 35.63% from N125.49 billion in December to N170.20 billion in January 2023.  

However, total foreign transactions increased by 63.71% from N15.21 billion (about $32.99 million) to N24.90 billion (about $53.98 million) between December 2022 and January 2023. 

Institutional and retail investors: According to the report, institutional Investors outperformed retail investors by 58%. A comparison of domestic transactions in the current and prior month (December 2022) revealed that retail transactions increased by 1.08% from N35.28 billion in December to N35.66 billion in January 2023.  

However, the institutional composition of the domestic market increased by 49.14% from N90.21 billion in December 2022 to N134.54 billion in January 2023. 

Performance in a decade: Highlights of the performance of the market over the last decade revealed that over a sixteen (16) year period, domestic transactions decreased by 45.30% from N3.556t in 2007 to N1.945 trillion in 2022 whilst foreign transactions also decreased by 38.47% from N616 billion to N379 billion over the same period. Total domestic transactions accounted for about 84% of the total transactions carried out in 2022, whilst foreign transactions accounted for about 16% of the total transactions in the same period.  

What you should know: The Domestic and Foreign Portfolio Investment Report is prepared monthly by NGX Regulation Limited, with trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI) flows. These transactions are carried out by Domestic and Foreign investors. Domestic investors are further categorized into Retail and Institutional investors.