2018 Outlook:NSE targets Demutualization, Exchange Traded Derivatives launch


Tuesday, January 16, 2018  5.00PM  / Proshare WebTV 

The Nigeria stock exchange is optimistic that the bill on Demutualization will be signed and passed in 2018, for the market. 

Also, the NSE is targeting the launch of the Exchange Traded Derivatives which will deepen the market and reposition the exchange. 

Mr Oscar Onyema disclosed this at the 2017 market recap and 2018 outlook of the NSE at the exchange house in Marina, Lagos. 

Giving a presentation that reviewed the previous year’s market activities and the strategies for the new year, Onyema said the Demutualization bill has already passed through all the readings at the National Assembly in 2017, which caused his optimism that it will be finally passed and signed into law this year. 

Speaking further on the outlook for 2018, the NSE CEO noted that from the economic perspective political activities and currency movements, will impact market activities in the year. 

He said the Nigeria stock exchange will engage the government on the possibilities of privatizing and listing State-owned enterprises. 

In a recap of the 2017 market activities, Onyema shared that in the equities segment the Banking index led by 73.32%, while the Pension Index(70.33%)  and Premium Board(51%)  came second and third respectively. The total equities for 2017 market year was N408bl in value. 

Listing achievements in 2017, the CEO informed market stakeholders that the exchange achieved an advance stage in the Demutualization process, Completion of draft rules, Development of products like the Green and FGN Savings bond, Development of a competitive price structure and the hosting of Capacity building events. 

The bond market according to him recorded a mixed performance of easing inflation and FX stability, and was dominated by the Federal Government. 

For the Exchange Traded Fund(ETF), 2017 recorded a 272% year-on-year growth, with a 33% turnover and the adoption of asset classes with new issuance. 

On Foreign Inflows, Onyema said the momentum picked up in March and reached its peak in August, 2017 which was a result of the positive Nigerian economic data releases. 

Looking at the IPOs space Mr Onyema said it still remained mute in 2017, with prospects of activities in 2018. 

Outlining the strategies of the NSE from 2018-2021, the market leader said the focus will be satisfying customers, boost retail segment penetration and enhancing customer focus. 

To strengthen the domestic retail segment, the NSE according to him will establish a retail coverage department to drive  publicity that will deepen activities in the retail market.

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