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Domestic transactions at bourse decrease by 67 per cent

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Trading floor of the Nigerian Stock Exchange PHOTO: Femi Adebesin-Kuti


Market capitalisation rebounds, gains N133 billion
Over a 12 year period, domestic transactions in the nation’s bourse decreased by 66.68 per cent from N3.556 trillion in 2007, to N1.185 trillion in 2018.

During the same period, foreign transactions increased by 97.88 per cent from N616 million to N1.219 trillion, while total foreign transactions accounted for about 51 per cent of the deals carried out in 2018, leaving domestic transactions at 49 per cent of the total transactions in the period.

According to the Nigerian Stock Exchange (NSE), trading figures from market operators on their Domestic and Foreign Portfolio Investment flows, showed total transactions at the nation’s bourse increased by 7.51 per cent on a monthly basis from N113.47 billion (about $370.4 million) in July 2019, to N121.99 billion (about $398.0 million) in August 2019.

Furthermore, the total value of transactions executed by foreign investors in August 2019, outperformed that of domestic investors by four per cent.
Similarly, total foreign transactions also increased by 10.59 per cent from N57.78 billion (about $188.6 million) to N63.90 billion (about $208.4million) between July and August 2019.

The performance in August 2019, when compared with the performance in the same period (August 2018), revealed that total transactions decreased by 8.85 per cent. A comparison of domestic transactions in the current and prior month (July 2019) revealed that retail transactions decreased by 5.97 per cent from N25.44 billion in July 2019 to N23.92 billion in August 2019.

However, the institutional composition of the domestic market increased by 12.95 per cent from N30.25 billion in July 2019 to N34.17 billion in August 2019.A further analysis of the total transactions executed between the current and prior month (July 2019) revealed that total domestic transactions increased by 5.39 per cent from N55.69 billion in July to N58.69 billion in August 2019.

Also, the value of domestic transactions executed by institutional investors outperformed retail investors by 8.00 per cent.Meanwhile, after a two-day losing streak, the Nigerian equities market rebounded yesterday, following price gains by most bluechip stocks, as investors’ wealth appreciated by N133 billion.

Yesterday, index surged 274.57 points or one per cent to settle at 27,681.61 points, while market capitalisation closed at N13.475 trillion, with investors gained N133 billion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are Stanbic IBTC Holdings, Guaranty Trust Bank, MTN Nigeria, Ecobank Transnational Inc. (ETI) and Lafarge Africa.Market breadth closed positive as 24 stocks recorded gains relative to 13 losers. Cutix and ETI recorded the highest price gain of 10 per cent, each to close at N1.54 and N8.80, respectively.

University Press followed with a gain 9.52 per cent to close at N1.15, per share. Wapic Insurance went up by 8.82 per cent to close at 37 kobo, while Associated Bus Company appreciated by 8.33 per cent to close at 39 kobo per share. On the other hand, champion Breweries led the losers’ chart by 8.80 per cent, to close at N1.14, while RT Briscoe followed with a decline of 6.90 per cent to close at 27 kobo, while Lasaco Assurance lost 6.67 per cent to close at 28 kobo, per share.

Aiico Insurance lost 5.88 per cent to close at 64 kobo, while Courteville Business Solutions shed 4.76 per cent to close at 20 kobo, per share.Total volume traded rose by 91.9 per cent to 379.51 million shares, worth N5.35 billion, and traded in 3,923 deals. Transactions in the shares of Guaranty Trust Bank topped the activity chart with 98.42 million shares valued at N2.83 billion. Access Bank followed with 40.73 million shares worth N314.47 million, while FBN Holdings traded 40.08 million shares valued at N216.63 million.FCMB Groups traded 20.05 million shares valued at N33.87 million, while Sterling Bank transacted 17.58 million shares worth N38.81 million.


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