NSE: Cumulative transactions in Q1 2018 hit N272.48bn

Total transactions at the nation’s capital market increased to N272.48 billion ($0.89 billion) in the month of March this year The transaction increased by 28.50 per cent from N212.05 billion recorded in February this year. The total shares transacted from January to March this year rose at the nation’s bourse by 48.29 per cent from N454.48 billion recorded in 2017 to N878.97 billion in 2018. The recent data from NSE on the portfolio investment in the capital market indicated that Domestic investors out performed foreign investors by 2.96 per cent in March 2018, revealing that total domestic transactions surged by 8.88 per cent from N128.83 billion in February to N140.27 billion in March this year.
The foreign transactions on the other hand show more significant growth, increasing by 58.87 percent from N83.22 billion to N132.21 billion within the same period. There was 55.29 per cent increase in foreign inflow from N44.89 billion in February 2018 to N69.71 billion in March 2018. Foreign outflows also increased by 63.06 per cent from N38.33 billion to N62.50 billion within the same period The institutional composition of the domestic market increased by 19.97 per cent from N76.08 billion in February to N91.27 billion in March 2018.
However, the retail composition decreased by 7.11 per cent from N52.75 billion to N49.00 billion within the same period. This indicates a higher participation by institutional investors over their retail counterparts. The NSE data also showed that since 2011, foreign transactions consistently outperformed domestic transactions.
However, in 2016 and 2017 domestic transactions marginally outperformed foreign transactions , accounting for 52 per cent of the total transaction value in 2017.
Also, foreign transactions which was N1.539 trilliin in 2014 declined to N518 billion in 2016, but increased significantly by 133 per cent to N1.208 trillion in 2017 thereby accounting for about 48 per cent of total transactions in 2017. Over an 11 year period, the NSE said that domestic transactions have decreased by 62.46 per cent from N3.556 trillion in 2007 to N1.335 trillion in 2017. However, there was a significant increase in 2017 by 111 per cent from N634 billion recorded in 2016.

 

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