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Sunday, February 21, 2021 /05:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics
Below are the top ten identified moments in the Nigerian Capital Market during the year 2020.
1. The Launch of the IPO Portal
The Nigerian Stock Exchange (NSE) announced the
official launch of X-PO, an online platform for
the subscription of public offerings (POs) on Friday, December 18, 2020,
following the "No Objection" letter received from the Securities and
Exchange Commission (SEC).
While we laud this step taken by the Exchange, it
is important to state that the URL to the portal was not provided in the
official communfication from the Exchange on the launch and no response was
received after many inquiries.
2. Growth Board
Following the launch of the Growth Board on January 29, 2020, 10
months after, the NSE migrated four companies from the ASeM Board to
the Growth Board on November 30th, 2020, and also launched the associated Growth Board Index the
same day.
The four companies
migrated are Chellarams Plc, Living Trust Mortgage Plc, McNichols Plc, and The
Initiates Plc while the Exchange remained silent on what will eventually
happen to the ASeM Board which currently houses companies that hardly record
movement in the share price.
3. Demutualisation of the Exchange
The demutualization of the Exchange which started
far back from the period of Prof. Ndi Onyuike Okereke was in office as the DG
of the Exchange seemed to move faster in Year 2020 as NSE Members assented to
the demutualization
resolutions
reached the COM and EGM held.
Also, the Exchange announced the Chief Executives of the emerging entities from the demutualized Exchange, a move that confirmed that the process will be completed soonest.
4. Remote Trading During Lockdown
The Nigerian Stock Exchange (NSE) following the outbreak
of the COVID-19 pandemic by activating a 30-day remote work plan.
Following the lockdown announced by the FG, the
NSE sustained its remote
trading
activities.
This step by the NSE is commendable. The market witnessed some improved trading activities during the lockdown as market data suggested thus.
5. NSEASI Crosses 40,000 Basis Point
The NSEASI crossed the 40,000
psychological
line in the year 2020. This is a feat last achieved in May 2018. It thus
culminated in a +50.03% growth in 2020 after recording two consecutive years of
losses.
It is important to state that this critical moment in the Nigerian Stock Market occurred in Q4 2020 as market YTD return was in the negative territory till the end of Q3 2020.
6. Increase in Stamp Duty
The market was notified that effective December 7th,
2020, CSCS will adjust its system to implement the automated deduction of the Stamp Duty rate
of 0.08%. The rate was formerly put at 0.075%.
This is a fallout of
a public notice issued by the FIRS itemizing Contract Notes
at an ad valorem rate of 0.08%.
While this is expected to translate into a little increase in market transaction charges, we want to encourage market regulators and government representatives to take a second look at this as markets in other climes are already talking about e-market activities with zero charges.
7. The Constitution of the Investment Security Tribunal/SEC Board
The
finance minister during the year 2020 constituted the board of
the Investment and Securities Tribunal (IST).
This move by the Honourable Minister is commendable because one of the key functions of the IST borders on investors protection which is a core mandate of the Securities and Exchange Commission.
8. Virtual Meeting/AGM
The COVID-19 pandemic and subsequent guidelines
issued by the NCDC on social distancing changed the way AGMs were held in the
year 2020.
The Corporate Affairs Commission (CAC) issued guidelines on holding of AGMs public companies using a proxy. Guaranty Trust Bank Plc was the first quoted company to adopt this approach in March 2020.
9. Re-introduction of Fixed Income Trading Fee
The Nigerian Stock Exchange (NSE) notified the
market in September 2020 that it will re-introduce
trading fees for securities traded in the fixed income market. The trading fees are fixed
at 0.005% for buy and sell transactions.
This might become necessary for The Exchange to
re-introduce the trading fees for fixed income securities because more
companies in recent times continue to trade and raise funds in the fixed income
market.
Also, as the Exchange moves towards a demutualised entity, it will serve as a source of additional revenue.
10. NASD Migration to a New Trading Platform
The NASD in November 2020 announced the migration to
a new trading platform. The new trading platform is referred to as N-ETS and brings
more functionalities to ensure a more efficient trading experience for market
participants.
Also, it enables trading of new asset classes
which erstwhile were not available in the OTC market.
Specifically, the platform provides an automated
matching engine; Multi Securities Support; Order and Quote market models; Order
Management gateway & routing support; Centralized order management; Secure
Data Interchange; Standard Messaging for Market Data OMS, and User-Friendly
Interface.
Do feel free to share your opinions/observations and feedback with us vide content@proshareng.com and/or research@proshareng.com
Watch Video
Downloadable PDF - The 2020 Nigerian Capital Market Report
1. Complete Report: The Nigerian Capital Market Report 2020: Leveraging a Crisis - Jan 28, 2021
2. Executive Summary: The Nigerian Capital Market Report 2020: Leveraging a Crisis - Jan 28, 2021
Related Links
1.
NCM 2020:
Technology and the Nigerian Capital Market
2.
NCM 2020:
Regulatory Governance in 2020
3.
NCM
2020: Energy Commodities Took a Big Hit in 2020
4.
NCM 2020: Bond Funds
Grew By 443.80% YoY in 2020
5.
NCM
2020: Lower FX Earnings Widened the Gap Between Two Markets
6.
NCM
2020: FGN Eurobond Was Driven by Movement in Oil Prices and COVID-19 Pandemic
7.
NCM 2020: Treasury
Bills Fell to a Record Lows in 2020
8.
NCM
2020: Yields in the Fixed Income Market Took a Downward Trajectory in 2020
9.
NCM
2020: Top Ten Moments in the Nigerian Capital Market in 2020
10. NCM 2020: NASD USI
Closed Green in 8 Out of 12 Months in 2020
11. NCM
2020: Extracts of Financials of Quoted companies - DANGCEM Tops on Revenue and
PAT
12. NCM
2020: Agriculture Sector - OKOMUOIL Tops on EPS and PAT Margin
13. NCM 2020: Healthcare
Sector - NEIMETH Tops on ROE and PAT Margin
14. NCM
2020: Industrial Goods Sector - DANGCEM Tops on EPS as BUACEMENT Tops on PE
Ratio
15. NCM
2020: Oil and Gas Sector - TOTAL Tops on PE Ratio as JAPAULOIL Tops on PAT
Margin
16. NCM
2020: Consumer Goods Sector - NESTLE Tops on EPS as DANGSUGAR Tops on PAT Margin
17. NCM 2020: Financial
Services Sector - NESF and STANBIC Top on EPS
18. NCM
2020: Sectoral Market Capitalisations: Oil and Gas Records - 20.62% Decline in
2020
19. NCM
2020: A Review of Gote and Toni Indices in 2020
20. NCM 2020: NSE Records
1 New Listing to 5 Delistings in 2020
21. NCM
2020: Growth of Securities Listed on NSE - Total Securities Listed Increased by
0.55%
22. NCM
2020: 23% of Listed Companies on NSE on Pause in 2020
23. NCM 2020: 84 Stocks
Are Off 52-Week Highs as 85 Near 52-Week Lows
24. NCM
2020: Forty-one Financial Services Stocks Are Penny Stocks in 2020
25. NCM
2020: NSEASI Performance Review and How Each Company Fared in 2020
26. NCM 2020: Market
Records 57 Gainers to 66 Losers in 2020
27. NCM 2020: Foreign
Portfolio Participation in Equity Trading Dropped from March to November 2020
28. NCM
2020: Trading Statistics in 2020 - Market Volume Increased by 21.69%
29. NCM
2020: NSE Market CAP Closed at US$55bn Below the Peak of US$84bn Recorded in
2013
30. NCM
2020: NSEASI Closed Green in 9 Out of 12 Months in 2020
31. NCM
2020: Markets Were Volatile Globally in Year 2020 as COVID-19 Pandemic Induced
Uncertainty
32. The Nigerian
Capital Market Report 2020: Leveraging a Crisis
Monthly NCM
1. The November 2020 Nigerian Capital Market Service Report - Proshare
2. The October 2020 Nigerian Capital Market Service Report - Proshare
3. The September 2020 Nigerian Capital Market Service Report - Proshare
4. The August 2020 Nigerian Capital Market Service Report - Proshare
5. The July 2020 Nigerian Capital Market Service Report - Proshare
6. The June 2020 Nigerian Capital Market Service Report - Proshare
7. The May 2020 Nigerian Capital Market Service Report - Proshare
8. The April 2020 Nigerian Capital Market Service Report - Proshare
9. The March 2020 Nigerian Capital Market Service Report - Proshare
10. The February 2020 Nigerian Capital Market Service Report - Proshare
11. The January 2020 Nigerian Capital Market Service Report - Proshare
12. The November 2019 Nigerian Capital Market Service Report - Proshare
13. The October 2019 Nigerian Capital Market Service Report - Proshare
14. The September 2019 Nigerian Capital Market Service Report - Proshare
15. The August 2019 Nigerian Capital Market Service Report - Proshare
16. The July 2019 Nigerian Capital Market Service Report - Proshare
17. The June 2019 Nigerian Capital Market Service Report - Proshare
18. The May 2019 Nigerian Capital Market Service Report - Proshare
19. The April 2019 Nigerian Capital Market Service Report - Proshare
20. The March 2019 Nigerian Capital Market Service Report - Proshare
21. The February 2019 Nigerian Capital Market Service Report - Proshare
22. The January 2019 Nigerian Capital Market Service Report - Proshare
Annual Reviews & Outlooks
1. NCM2020 - Fin. MKT in Transition: Understanding Past Uncertainties; Preparing for New Possibilities
2. Surviving Uncertain Times in the Nigerian Financial Market
Special Reports & Publications
1. NSE Ten Years After a Takeover: The Good, The Bad and Undecided
2. NSE Post Takeover: A Journey Through Time
3. NSE Post Takeover: The Story of Then and How
4. NSE Post Takeover: Market as a Metaphor
5. NSE Post Takeover: The Imperatives of Tomorrow: Myths, Risks and Opportunities
6. NSE Post Takeover: Power Moves -Demutualization and The New Board Games
7. NSE Post Takeover: A Whole New World-Reimagining Endless Possibilities
8. NSE Post Takeover: Back of the Envelope
Online Trading Reports
1. Online Trading Ranking Report 2020 - Trading in a Period of a Virus; Building Good Habits
2. Online Trading Ranking Report 2019 - Refining The User Experience; Trends In Digital Trading
3. Nigerian Online Trading Portals Ranking Report 2018
4. Nigerian Capital Market and FX Online Trading Portals Ranking Report H2 2017
5. The Nigerian Capital Market Online Trading Portals Ranking Report
6. The Nigerian Online Trading Report
CMO Reports
1. Nigerian Equity Market Outlook: COVID Out, Riots In?
2. Nigerian Economic and Financial Markets: H1:2020 Review and H2:2020 Outlook Opportunity in a Crisis?
3. Nigeria Economic Outlook 2021: A Shot at Recovery
4. 2021 Outlook - Is The Tunnel Getting Darker or Brighter
5. Nigeria in 2021: Positioning in the New Normal
6. Nigeria 2021 Outlook - Navigating Unsteady Terrain
7. Nigeria FY 2021 Macroeconomic Outlook - A Break in the Clouds
8. Nigeria 2021 Outlook: COVID-19 Recession and the Long Road to Economic Recovery
Selected Articles
1. The Year 2020 in Retrospect: A Bleak Year for Households
2. Will Gold Prices Rally in 2021? Here are Its Ebbs and Flows
3. Review of 2020 Activities In The Islamic Finance Market And The Outlook For 2021
4. Ranking Global Equity Markets in 2020: NASDAQ Takes The Lead
5. Holiday Blues Dampen Trading Activities for Last Trading Session
6. 2021:President Buhari Reaffirms Commitment To A United And Progressive Nigeria
7. Ten Most Capitalised Stocks Account for 83% Contribution to the NSEASI
8. Proshare's New Year Message - Change, Technology, and The New Corporate Calling
News Posts Referenced in the Report
1. NSE Revolutionises Public Offerings Subscription with Electronic Platform
2. Finally, NSE Launches the Growth Board with FintechNGR as a Strategic Partner
3. NSE Migrates Four Companies from ASeM to Growth Board
4. Demutualisation: NSE Announces Chief Executives for Emerging Entities
5. NSE Members Assent to Demutualisation Resolutions at COM and EGM
6. COVID-19: NSE Activates 30-day Remote Work Plan; Remote Trading to Continue
7. FGN 14 Day Restriction: NSE to Sustain Remote Trading Amidst COVID-19 Pandemic
8. CAC Issues Guidelines on Holding of AGMs of Public Companies Using Proxies
9. COVID-19 and AGM by Proxy: Lessons from GTBank Approach
10. Revision of Stamp Duty on NSE Transactions to 0.08% from 0.075% Effective 7th December 2020
11. HM Zainab Shamsuna Ahmed Urges IST to Discharge Duties Diligently
12. NSE to Re-Introduce Trading Fees for Securities Traded on the Fixed Income Market