NSE recovers form overhang to become third best performing market, says CEO
The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Mr. Oscar Onyema yesterday said the Nigerian stock market recovered from the macroeconomic overhang to become the third best performing market in 2017 globally.
He attributed the growth of 42.3 per cent recorded by the market in part, to Central Bank of Nigeria (CBN)’s monetary policies that resulted in increased liquidity in the foreign exchange market.
Speaking during the NSE 2017 Market Recap & Outlook for 2018 in Lagos, Onyema said that the equity market activity rose by 121 per cent from ₦576 billion in 2016 to ₦1.271 trillion.
According to him, the initial public offering (IPO) activity in the year remained mute, noting, however, that there were several other positive indicators including the revival of supplementary listings and the return of new issuances. The value of supplementary listings increased by 27 per cent, bringing the total value of equity issues in 2017 to ₦408 billion.
On bonds, Onyema remarked that the NSE fixed income market recorded mixed performance. He said new bond issuances increased over the previous year, while bond yields gradually moderated from 2016 levels amidst easing inflation and greater FX stability.
The NSE boss also noted that NSE made steady progress on its strategic focus areas set out at the beginning of 2017.
“Demutualisation remained a key strategic focus in the year under review. Through targeted engagement efforts with our members, Securities and Exchange Commission (SEC), the National Assembly (NASS), NSE members including Association of Stockbroking Houses of Nigeria (ASHON), Corporate Affairs Commission (CAC) and other key stakeholders, we achieved the broad-based support required to secure approval for demutualisation from the exchange’s members and successfully progressed the Demutualisation Bill through the first and second reading and public hearing stages of the law making process,” he said.
Onyema stated that NSE re-assessed its strategic agenda and has come up with a new corporate strategy for the 2018 – 2021 period that will “satisfying our customers, boosting our domestic retail segment, and enhancing our organisation for a demutualised structure.”
Speaking on the outlook for 2018, Onyema remained bullish, noting that outlook for the Nigerian capital market is encouraging.
“Indeed, to some extent, political activities and currency movements will have some effect on the market, but we expect that such impacts will be short lived and the performance of the underlying business activities will ultimately determine market performance,” he said.
Onyema explained that the NSE is on track to become a more agile and flexible demutualised securities exchange.