Monday, January 13, 2020 /12:54
PM / By NSE / Header Image Credit: The Nigerian Stock Exchange
The Chief Executive Officer of The Nigerian Stock Exchange ("NSE" or "The Exchange"), Mr Oscar N. Onyema OON, today presented the key performance of
the Exchange in 2019 and gave a prognosis for the market in the New Year 2020.
The event, aptly themed 2019 Market Recap and Outlook for 2020 held on
Monday, January 13, 2020, had in attendance the stockbroking community,
analysts, media and other stakeholders.
Delivering his presentation, Mr. Onyema stated, "The Nigerian capital market mirrored the performance of the larger
economy, which continued its moderate path of recovery, growing by 2.28%
(Q3'19). The Nigerian bourse witnessed the impact of various factors including:
a weak macroeconomic landscape; fiscal and monetary policy direction;
underwhelming trends in Foreign Portfolio Investments; concerns around the
statbility of the naira and moderate corporate earnings. While these factors
led to a negative performance in the equity market during the year, our Fixed
Income market performed exceptionally well, reflecting a flight to safety."
highlights of his presentation are as follows:
Global Capital Market
an international investor's perspective, the Nigerian bourse had to compete
with developed and emerging capital markets which saw risk-based assets
priced/valued more competitively. Capital conducive US Fed policy enabled foreign
investors to economically enhance leverage and seek investment opportunities in
their home and adjacent countries, necessitating Africa's largest economy to
adjust to new economic realities.
the Nigerian Stock Exchange's All Share Index (ASI or All Share Index) posted a
negative return of -14.60% to close the year at 26,842.07, the ASI reached a
year-high of 32,715.20 in February 2019. Furthermore, the equity market
capitalization increased by 10.55% to N12.97Tn from N11.73Tn in 2018, largely
due to sustained primary market activities throughout the year, most notably
the listings of MTN Nigeria Communications Plc and Airtel Africa.
support the equity market in 2019, The Exchange rolled out various initiatives
- a new
market structure to enhance liquidity and ensure overall market stability
launch of the beta version of the X-Mobile (a dynamic and user-friendly
mobile app) to boost retail investors' participation.
fixed income market performed exceptionally well in 2019, as market
capitalization increased by 20.42% to N12.92Tn from N10.72Tn in 2018. Turnover
also increased by 389.26% when compared to 2018 although capital raising was
dominated by the Federal Government, being responsible for 60% of bond
issuances during the period in a bid to finance fiscal and infrastructure
of the ground breaking achievements for the year include:
of Access Bank Plc's N15bn Green Bond, the first of its kind to be issued
by an African corporate.
of North South Power Company Limited's N8.5bn corporate infrastructure
Green Bond, which was oversubscribed by 60%, with firm commitments from
twelve institutional investors including nine pension funds. Capital
raising by corporates increased by 321.61% with a total of N132.68Bn
raised in 2019.
- The Exchange signed an MoU with the Luxembourg Stock Exchange (the
largest Green Bond listing platform in the world) at the World Federation
on Exchanges (WFE) conference held in Singapore. The MoU is geared towards
promoting cross-listing and trading of Green Bonds in Nigeria and
Luxembourg. Relationships of this nature will foster co-opetition, and
further enhance the ability of The Exchange to deliver greater value to
Strategic Performance across Business Development
Exchange showed commitment to achieving its strategic objectives during the
year under review. Some of the milestones achieved across business development
were the launch of the:
app to boost investors' participation;
Relations data pack to enhance issuers' stakeholders' engagement;
Fund Trading and Distribution Platform to enhance the retail customer
e-learning to make quality learning accessible and affordable to
individuals, corporations and institutions.
Exchange recorded milestone listing of big corporates such as:
- listing of MTN Nigeria
Communications Plc by introduction on the Premium Board;
- cross border listing of Airtel
Africa on the Main Board, alongside London Stock Exchange;
- SAHCO Plc listing by IPO on the
- launch of the Greenwich Alpha
ETF focused on tracking the NSE 30 index.
Exchange sustained its thought leadership and advocacy role in the capital
- organising the first ever
Hackathon designed to encourage Tech enthusiasts to develop innovative
- hosting two interactive
sessions in the Insurance and Consumer Goods sectors;
- organising the Fixed Income
Trading Workshop to enhance the capacity of dealing members;
- holding the inaugural edition
of the Islamic Finance in Nigeria (IFN) Forum in partnership with REDmoney
Corporate Citizenship Development
upholding its key pillars of sustainability, The NSE:
- Joined The World Federation of
Exchanges (WFE) and International Organization for Securities Commission
(IOSCO) in the inaugural "Ring the Bell for Financial Literacy" initiative, to draw attention to the importance of financial literacy
- Partnered several organisations
in key areas of environmental responsibility including Recycle points and
the Mental and Environmental Development Initiative for Children (MEDIC)
on critical initiatives.
- Launched the Facts Behind the
Sustainability Report (FBSR) and the Sustainability Disclosure Guidelines
to promote Environmental, Social and Governance (ESG) practice and
- Recorded 40,966 entries in its
annual essay competition, marking a 100% increase from the 20,016 essays
received in 2018 and the highest number of essays recorded in the 19
years' history of the competition.
- Appointed Tuface Ujah Idibia as
our Good Cause Ambassador to help in raising awareness and mobilizing
support for the CSR initiatives of The Exchange.
- The Exchange was honoured with
the Best Corporate Social Responsibility Initiative Award at the Marketing
World Awards and also won the Outstanding Invaluable Company for CSR from
Outlook for 2020
The Exchange's efforts in 2020, Onyema said, "The year 2020 has started on a
good note, with the NSE ASI recording a 9.41% improvement year-to-date as at
January 10. We intend to work closely with our stakeholders to sustain this
growth trajectory. As African Champions, we will maintain momentum in executing
the NSE's 2018 - 2021 Corporate Strategy in our efforts to elevate the
prominence of Africa's global financial markets."
its aspiration to become a more agile and demutualized exchange, and pursuant
to the SEC's 'No Objection' rule, The Exchange will proceed to next steps which
include seeking formal approval from its members on demutualization Scheme.
While keeping an eye on the strategic intent post-demutualization, The Exchange
commits to leveraging its vast network of stakeholders, in addition to
developing new strategic partnerships to deliver better products and services
to the investing public.
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