Domestic stock investors dominate trade as portfolio transactions surge 42%

By Peter Egwuatu 

Domestic investors have  recorded significant growth for the bulk of activity on the Nigerian Exchange Limited (NGX) in December 2025, as total domestic and foreign portfolio transactions rose sharply to N1.38 trillion, reflecting a 42.13 per cent increase from N0.97 trillion recorded in November 2025.

The NGX Domestic and Foreign Portfolio Investment, FPI, trading figures released yesterday, showed that the surge was driven largely by heightened domestic participation, with local investors executing transactions valued at N0.92 trillion, representing 67 per cent of total market activity during the month. Foreign investors, on the other hand, accounted for N458.09 billion, or 33 per cent, underscoring the continued dominance of domestic funds in equity trading.

On a Year-on-Year, YoY, basis, overall market activity also strengthened significantly, with total transactions rising by 104.91 per cent compared with N673.67 billion recorded in December 2024, reflecting improved liquidity conditions and stronger investor confidence in the equities market.

A breakdown of the December figures showed that domestic transactions increased by 13.99 per cent, from N0.809 trillion in November to N0.922 trillion in December 2025. However, the most dramatic growth came from foreign participation, as total foreign transactions jumped by 182.70 per cent, rising from N162.04 billion in November to N458.09 billion in December.

The sharp rise in foreign activity was largely attributed to block trades, which significantly boosted both inflows and outflows during the month.  

Data revealed that foreign inflows rose to N223.79 billion, while foreign outflows stood at N234.30 billion, pointing to active portfolio repositioning by offshore investors.

Despite the resurgence in foreign trades, domestic investors continued to outperform their foreign counterparts by a wide margin. In value terms, domestic transactions exceeded foreign trades by approximately 34 per cent, reinforcing the pivotal role of local investors in sustaining market depth and stability.

Further analysis of domestic participation showed that institutional investors remained the dominant force, outperforming retail investors by 30 per cent. Institutional transactions increased by 13.63 per cent, from N531.21 billion in November to N603.62 billion in December 2025, while retail trades rose by 14.67 per cent, from N277.93 billion to N318.69 billion over the same period.

Analysts say the December performance reflects improving market sentiment, portfolio rebalancing ahead of year-end, and growing confidence in Nigeria’s equity market fundamentals, even as domestic investors continue to provide a strong liquidity backbone amid fluctuating foreign flows.

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