The Nigerian Stock Market: 2015 Expectation and Outlook – TNI Q1/E1

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Thursday, January 1, 2014/ 7.20am / The Nigerian Investor, sss@proshareng.com

 

The Nigerian Stock Market in 2014 closed negative with the key market indicator, NSE ASI, far below what was expected at the beginning of the year. Nonetheless, Market regulators, operators and every other stakeholders will expect that 2015 will be a year of new developments and growth in terms of positive market performance and reactions.

 

One of the key decisions and actions expected to shape market outlook and structure in 2015 is the re-capitalisation exercise earlier announced by the Securities & Exchange Commission (SEC), the apex capital market regulator in Nigeria.

 

With a nine (9) months extension reached by the Board of the Securities and Exchange Commission at its end of the year meeting, it is believed that capital market operators will have ample time to prepare in order to meet the deadline for compliance considering the global economic situation of which Nigeria is not an exception.

 

In addition, the implementation of the 10-year capital market master plan starting from 2015 will also be another key step that will re-shape market structure as the market is expected to witness the introduction of Islamic bond capital market products like Sukuk which is expected to contribute 15% of the projected 25% Non-Interest Capital Market contribution.

 

As the global economic downturn which rubs-off on the capital market prevails due to the dwindling oil price/revenue, it is believed that some investors would be discouraged from participating actively in such a way that would spur the market to positivity.

However, year 2015 holds key market expectations which includes but not limited to;
      The launch of the listing on the premium board of the Exchange
      The implementation of the ten-year capital market master plan (2015-2025)
      The full implementation of the re-capitalization of CMOs with new deadline set for 30th Sept, 2015; and
      We also expect to see brokerage firms launch zero-fee stock trading Apps which will encourage more local investors to participate and trade in the market at no cost/commission.

The Market from the Investors Perspective

In this edition of #TheNigerianInvestor, we conduct our regular market round-up of innovations, activities, developments, AGM’s, market news, corporate actions, company appointments, announcements as well as updates from market regulators.


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