The Nigerian Exchange Limited (NGX) has said that the total domestic transactions carried out by investors on the Nigerian Exchange Limited (NGX) floor have risen to N659.26 billion in the first four months of 2023.

The Exchange stated this in a released data on domestic and foreign portfolio participation in Nigeria’s equity trading for April made available to Nairametrics.

Economic challenges

NGX noted that the prolonged FX scarcity and inflation among others have been taking their toll on the Nigerian economy and the capital market which is the barometer of the economy has seen mixed sentiments in transactions in the month under review.

The NGX explained that domestic transactions decreased by 45.30% from N3.556 trillion 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

It added that 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.

According to the report, the transaction data for 2023 shows that total domestic transactions stood at N659.26 billion, whilst total foreign transactions currently stand at N62.18 billion.

Analyzing the report, NGX said the total transactions at the local bourse at the end of April, increased by 30.77% from N146.22 billion (about $317.09 million) recorded in March 2023 to N191.21 billion (about $ 413.25 million) was recorded in April 2023.

• “However, the performance of the current month when compared to the performance in April 2022 (N205.88 billion) revealed that total transactions decreased by 7.13%.
• In contrast, total foreign transactions decreased by 7.83 per cent from N9.19 billion (about $19.94 million) to N8.47 billion (about $18.31 million) between March 2023 and April 2023,” the report said.

The report also revealed that the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 92%. Domestic inflows and outflows recorded in the month under review stood at N91.91 billion and N90.83 billion respectively while foreign inflows and outflows stood at N3.67 billion and N4.80 billion.

According to the report, a comparison of domestic transactions in the current and prior month (March 2023) revealed that retail transactions increased by 40.43% from N52.83 billion in March to N74.19 billion in April 2023.

Similarly, the institutional composition of the domestic market increased significantly by 28.92% from N84.20 billion in March 2023 to N108.55 billion in April 2023.