NSE Expects Revival of Supplementary Listings in 2017


Thursday, January 12, 2016 4.58PM/Proshare WebTV

The Nigeria stock exchange is optimistic that in 2017, there will be a revival of supplementary listings in the market coupled with the return of new issuance market and potentially one Initial Public Offer (IPO).

This was the assertion 0f the Chief Executive Officer of the Nigeria stock exchange Mr. Oscar Onyema at the 2016 market recap and 2017 outlook at the exchange house, Lagos.

Considering a challenging 2016 market year, Onyema highlighted that the economic recession in Nigeria impacted the equity market space.

Looking at some of the sectors, the NSE Industrial average dropped by -26.37% while the Oil and Gas sector declined by -12.31% in performance, NSE REITs dropped by  -49.48% and the Vetiva ETF was not left out, with a massive price decline of 20.5%.

In the area of investments, the foreign investments witnessed a 45% drop in 2016, due to the loss of confidence in the forex management, weak corporate performance and the Q2 2016 successive negative GDP growth which led to the recession.

Speaking further, Onyema said 2016 was the year Nigeria experienced the lowest level of investment in the last 12yrs, with Foreign Investments dropping by 69.79% and Domestic dropping by 56.79%.

The NSE, according to the CEO, experienced some resilience with the Premium Board index closing in a positive zone for 2016, with 6.98% return. For the Banking sub-sector, it was an improved performance of 2.17%.

Overall the NSE closed 2016 in a negative zone with -6.17% loss, which reflected a -6.12% decline in the equity market capitalization.

Mr Onyema listed the NSE milestones of 2016, some of which include: setting the roadmap for demutualization, derivatives product development, monetization of market suites, development of a competitive price structure, launch of Vetiva S&P Nigeria Sovereign Bond ETF, launch of SMARTs solution for effective/efficient market surveillance and roll out of the corporate governance rating system (CGRS) for listed companies.

Giving the market outlook for 2017, the NSE boss said Nigeria is expected to recover from the recession with a modest growth of 0.6% which hinges on vigour for fiscal policy implementation, lower rate of disruptions of oil infrastructure, positive impact of the Anti-corruption crusade focused on improving the ease of doing business, policies geared towards driving economic productivity and the crude oil price going up above the FG benchmark of $42.5.

From the 2017 NSE strategic outlook, Onyema outlined the focus to include the following; developing innovative products for exchange traded derivatives, focusing on becoming an agile and demutualized exchange, enhancing cross-border integration and engaging private sector issuers for listings across all of the product categories.

The 2016 market recap and 2017 market outlook was attended by analysts, broker-dealers and capital market correspondents across the country.

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