NSE Reports 39.58% Plunge in Transactions in 2016

Total transactions at the Nigerian Stock Exchange, NSE, from January to December 2016 dropped by 39.58 percent from N1, 905.63 billion in 2015 to N1, 151.38 billion, according to the NSE monthly report titled “Domestic and Foreign Portfolio Participation in Equity trading”.

According to the report, total transactions at the nation’s bourse increased Month on Month by 48.91 percent from N64.39 billion recorded in November 2016 to N95.88 billion (about $0.31 billion) in December 2016. Total foreign transactions for the Period Ended 31 December 2016 decreased by 49.51 percent from N1,025 billion recorded at the end of 2015 to N517.55 billion at the end of 2016.

Domestic transactions also decreased by 28.02 percent from N880.56 billion to N633.82 within the same period.Foreign transactions have consistently outperformed domestic transaction since 2011. However, domestic transactions slightly out performed foreign transactions in 2016, accounting for 55 percent.

Also, foreign transactions further declined by 66.34 percent from N1, 539b in 2014 to N518b in 2016, about 45 percent of total transactions in 2016. Meanwhile a trend analysis over the nine year period of 2007 to 2016, domestic transactions showed a significantly decline by 85.43 percent from N3.6 trillion in 2007 to N634 billion in 2016.

As the total domestic transactions increased by 27.32 percent between January and December, the institutional composition of the domestic market increased by 63.16 percent from N21.85b in January to N35.65b in December, while the retail composition decreased by 14.14 percent from N18.88b to N16.21b within the same period.