NCM 2020: Top Ten Moments in the Nigerian Capital Market in 2020


Sunday, February 21, 2021   /05:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics

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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.

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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 SummaryThe Nigerian Capital Market Report 2020: Leveraging a Crisis - Jan 28, 2021


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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

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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

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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


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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

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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

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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

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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

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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

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