Transaction on NSE drops 17.9% in March

Transaction on NSE drops 17.9% in March
Oladejo Amos
Total transactions on the Nigerian Stock Exchange decreased by 17.87 per cent from N117.2billion recorded in February 2016 to N96.31 in March 2016.
In comparison to the same period in 2015, total transactions decreased by 47.66 per cent from the N184.02 recorded in March 2015.
Data obtained from the NSE’s website showed that domestic investors outperformed foreign investors by 28.48 per cent as total foreign portfolio transactions decreased from 36.48 per cent to 35.76 per cent over the same period.
Monthly foreign out flows outpaced inflows which was consistent with the same period in 2015.
Foreign outflows decreased by 40.20 per cent from N31.84billion in February 2016 to N19.04 billion while foreign inflows increased by 40.77 per cent from N10.94 billion in February 2016 to N15.40 billion in March 2016.
On the domestic composition of transaction, between January and March, total domestic transaction dropped by 16.94 per cent from February to March 2016.
Also, the institutional composition of the domestic market increased by 0.71 per cent from N38.25 billion in February to N38.52 billion in March, while the retail composition fell by 35.57 per cent from N36.24 billion in February to N23.35 billion in March 2016.
This indicates that institutional investors slightly outperformed their retail investors in the period under review.
It should be recalled that 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 investment outperformed domestic transactions.
In 2015, foreign portfolio investments dropped compared to 2014. However, it slightly outperformed domestic transaction in the same period.