Despite 2017 Bullish Year NSE Records Zero IPO ―CEO

 In Investor News

The Nigerian Stock Exchange (NSE) in 2017, despite being a bullish year which translated to the Bourse emerging the 3rd best performing stock globally, recorded no Initial Public Offer (IPO).

At the Stock Exchange House, the Chief Executive Officer of NSE, Mr Oscar Onyema, while briefing the stockbroking community, analysts, media and other stakeholders, on the performance of the market in the preceding year and give prognosis for the market for the New Year, 2018, noted that the equity market activity skyrocketed from 2016 levels, as market turnover increased by 121 percent to N1.27trillion from N0.58trillion.

“IPO activity in the year remained mute, however, there were several other positive indicators including the revival of supplementary listings and the return of new issuances. The value of supplementary listings increased by 27 percent, bringing the total value of equity issues in 2017 to N408 billion,” he said, adding that NSE recovered from the macroeconomic overhang of the commodity downcycle to become the third best-performing market in 2017 globally, with a 42 percent return in the NSE ASI index.

He attributed this performance, in part to Central Bank’s Monetary Policies that resulted in increased liquidity in the Foreign Exchange market. Onyema also noted that NSE made steady progress on its strategic focus areas set out at the beginning of 2017.

“Demutualization remained a key strategic focus in the year under review; through targeted engagement efforts with our members, Securities and Exchange Commission (SEC), the National Assembly (NASS), NSE members including Association of Stockbroking Houses of Nigeria (ASHON), Corporate Affairs Commission (CAC) and other key stakeholders.

We achieved the broad-based support required to secure approval for demutualization from the Exchange’s members and successfully progressed the Demutualization Bill through the first and second reading and public hearing stages of the lawmaking process.”

In keeping with its objective of taking a vigorous and adaptive approach to strategy execution, Onyema stated that NSE re-assessed its strategic agenda in light of changing dynamics in both the operating environment and the global exchange landscape against the backdrop of the fourth industrial revolution. This culminated in a new corporate strategy for the 2018 – 2021 period.

“Our efforts will be geared at satisfying our customers, boosting our domestic retail segment, and enhancing our organisation for a demutualized structure”. Speaking on the prognosis for 2018, Onyema noted that the outlook for the Nigerian capital market is encouraging. Indeed, to some extent, political activities and currency movements will have some effect on the market, but we expect that such impacts will be short-lived and the performance of the underlying business activities will ultimately determine market performance.”

https://www.financialwatchngr.com/2018/01/16/despite-2017-bullish-year-nse-records-zero-ipo-%e2%80%95ceo/

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