The Chief Executive Officer of the Nigerian Stock Exchange(NSE),Oscar Onyema has said that the nations economy has better prospects for 2018.The NSE topman aired this during his “2017 Market Recap and 2018 Outlook” Tuesday.
Speaking at the annual forum for the NSE CEO to brief the stockbroking
community, analysts, media and other stakeholders, on the performance of the market in the preceding
year and give prognosis for the market for the New Year, 2018. Mr. Onyema noted that NSE recovered from the macroeconomic overhang of the commodity down cycle to become the third best performing market in 2017 globally, with a 42 percent
return in the NSE ASI index.
He attributed this performance, in part, to Central Bank’s monetary policies that
resulted in increased liquidity in the foreign exchange market.
According to him, the equity market activity skyrocketed from 2016 levels, as market turnover
increased by 121% to N1.27 trillion from N0.58 trillion. He stated that “IPO activity in the year remained
mute, however, 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%, bringing the total
value of equity issues in 2017 to N408 billion”.
On bonds, Onyema remarked that the NSE fixed income market recorded mixed performance. “New bond
issuances increased over the previous year, while bond yields gradually moderated from 2016 levels amidst
easing inflation and greater FX stability. Yields across various tenors declined between 0.4% and 1.5%, and
market turnover declined by 24% in 2017, as investors sought higher returns in alternative product classes.
However, supplementary issuances by the Federal Government saw bond market capitalization increase by
“The NSE’s ETF market witnessed increased activity across key metrics in 2017, recording a 272% year-on–
year growth in trade volumes, 33% growth in turnover and a 40% year-on-year increase in market
capitalization to close the year at N6.69 billion” he added.
As he stated “Demutualization 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 demutualization from The Exchange’s members and successfully progressed the
Demutualization Bill through the first and second reading and public hearing stages of the law making process”.
On the prognosis for 2018, Onyema postulated that the 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”.
“We are hopeful that the Demutualization Bill will be signed into law in 2018, and are working assiduously with
our Advisers to fine-tune outstanding aspects of the demutualization project as well as providing clarity and
transparency on the process via regular engagement with all our valued stakeholders”.
“In 2018, NSE will launch Exchange Traded Derivative instruments and continue to engage with the
government on privatization and listing of state owned enterprises in collaboration with the private sector.
We also plan to maintain our role as an advocate for the adoption and implementation of market friendly