NGX Domestic Transactions Decline to N535bn
Total transactions in equity trading on the Nigerian Exchange Limited declined by 9.89 per cent to N607.05bn in January 2025 from N673.66bn recorded in December 2024.
In its Domestic & Foreign Portfolio Investment Report on Monday, the decline was driven by a drop in domestic transactions, which fell by 11.71 per cent from N606.91bn in December 2024 to N535.54bn in January 2025.
However, foreign portfolio participation in the market saw a positive movement, with total foreign transactions rising by 7.13 per cent from N66.75bn (about $43.47m) in December 2024 to N71.51bn (about $48.38m) in January 2025. This increase in foreign activity comes despite a strengthening naira, with the exchange rate appreciating from N1,535.81/$ as of December 31, 2024, to N1,478.22/$ as of January 31, 2025.
A year-on-year analysis showed that total transactions declined by 6.83 per cent compared to the N651.52bn recorded in January 2024. Domestic investors continued to dominate the market, accounting for 88.22 per cent of total transactions in January 2025, while foreign investors contributed 11.78 per cent.
In comparison, domestic participation in January 2024 stood at 91.85 per cent, with foreign investors accounting for 8.15 percent.
Further analysis of domestic transactions revealed a shift in investor composition. Retail investors increased their participation by 33.10 per cent, from N200.87bn in December 2024 to N267.35bn in January 2025.
Conversely, institutional investors, traditionally dominating domestic trades, reduced their participation by 33.95 per cent, from N406.04bn in December 2024 to N268.19bn in January 2025.
Over an eighteen-year period, domestic transactions have grown by 33.15 per cent, rising from N3.56tn in 2007 to N4.74tn in 2024. Foreign transactions also increased within the same period, growing by 38.31 per cent from N616bn to N852bn.
In 2024, domestic transactions accounted for about 85 per cent of total market activity, while foreign transactions made up 15 per cent. As of January 2025, domestic investors had already executed transactions worth N535.54bn, while foreign investors had participated in trades valued at N71.51bn.
