The Nigerian Stock Exchange (NSE) has reported that the demand for local stocks by foreign investors between July and August 2020, increased by 12.69%, from N34.59 billion (about $89.0 million) recorded in July 2020 to N38.98 billion (about $100.81 million) as of August 2020.
The performance of the current month when compared to the performance in August 2019 (N121.99billion) revealed that total transactions decreased by 22.58%.
In August 2020, the total by value of transactions executed by Domestic Investors outperformed transactions executed by Foreign Investors by circa 18% as shown in figure 1 below.
The report showed that both Retail and Institutional investors of the domestic market recorded a decline, however, the magnitude differs.
According to the report, while retail transactions decreased by 18.22%, from N32.54billion to N26.61billion in the period under review.
The shares of institutional investors in the domestic market decreased by 20.01%, from N36.08billion in July 2020 to N28.86billion in August 2020.
Over a thirteen-year period, domestic transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.
Total domestic transactions accounted for about 51% of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49% of the total transactions in the same period.
The actual performance referenced 2020A (2020 Actual) shows those total foreign transactions carried out year till date (YTD) is about N470.20billion whilst total domestic transactions YTD is about N731.00billion.