Transaction In Stocks Drop 23.9% In January

Transaction In Stocks Drop 23.9% In January
Oladejo Amos
Total transaction on the Nigerian Stock Exchange decreased by 23.93 per cent in January, from N11.56 billion recorded in December 2015 to N84.1 billion.
The transaction dropped 55.67 per cent when compared to N189.72 billion recorded in the same period of 2015.
Data obtained from the NSE website showed that domestic investors conceded about 3.14 per cent of trading to foreign investors as domestic transaction decreased from 53.55 per cent in December 2015 to 48.43 per cent in January 2016.
However, foreign portfolio transaction increased from 46.45 per cent in December 2015 to 51.57 per cent in January 2016.
Also, foreign outflow in the month under review outpaced the inflow which was consistent with the same period in 2015.
But there was a 23.17 per cent decline in foreign outflows from N34.31 billion recorded in December 2015 to N26.36 billion in 2016.
Also, foreign inflows dropped 0.18 per cent from N17.04 billion in December 2015 to N17.01 billion in January 2016.  
Further analysis showed that the institutional composition of the domestic market accounted for 54 per cent while the retail composition accounted for 46 per cent in the same period.
This indicates more active participation by institutional investors over their retail counterparts in the same period under review.
Meanwhile, in 2013, there was a major rebound in the domestic component which led to an almost equal split in foreign versus domestic transactions.
This dropped in 2014 where foreign portfolio investments outperformed domestic transitions.
In 2015, foreign portfolio investments dropped compared to 2014. However, it slightly outperformed domestic transactions in the same period.