NSE PROJECTS IMPROVED MARKET TRANSACTIONS AS FG INTENSIFIES REVENUE DIVERSIFICATION DRIVE
The Nigerian Stock Exchange, NSE, yesterday, said it expects the marginal reopening of businesses, normalisation of the economy and revenue-diversification drive of the Federal Government to elicit positive market transactions throughout the year. The Exchange also disclosed that members of the investing public will be given access to own shares of the NSE as it plans to list its shares by way of introduction.
It also envisaged the stock market to be most dominated by local investors given the foreign exchange volatility and low interest rate policy of the Central Bank of Nigeria, CBN. Chief Executive Officer, NSE, Mr. Oscar Onyema, while briefing capital market stakeholders and operators said: “We plan to list the shares of the Exchange by way of introduction and this will give the investing public opportunity to buy shares as members of the Exchange release part of their shares for sale. But the larger participation of the public will occur when the Exchange floats an Initial Public Offering, IPO.”
On market recap for 2020, Onyema said: “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty. For the Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year-end bull run.
Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index (ASI) emerged the best-performing index in the world, surpassing the S&P 500 (+16.26%), Dow Jones Industrial Index (+7.25%) and other global and African market indexes, to post a one-year return of +50.03%.” He noted that the outbreak of COVID-19 and its rapid spread across the globe in the first quarter of the year triggered panic selling by global investors.
“According to the World Federation of Exchanges (WFE), global capital markets lost USD18 trillion due to the pandemic over the course of February and March 2020 alone. However, diverging from grim economic projections, global markets saw a rebound following the sharp drop in March, as many indicators recovered to pre-pandemic levels by June 2020, fuelled by extraordinary stimulus packages, monetary policy actions and public health responses from world governments and economic actors
While projecting the outlook for 2021, the NSE CEO said: “Looking ahead, the year has started on a positive note as the ASI has already returned 2.0% after 11 trading sessions. “We expect the marginal reopening of businesses, normalisation of the economy and revenue-diversification drive of the Nigerian government to elicit positive sentiments throughout the year”.
“Our growth expectations should be noted with caution, as the recent second wave of COVID-19 in Nigeria and globally, may slow down renewed social and economic activities.” Continuing, he said: “As the NSE transitions to a de-mutualised exchange group, the appointments of Mr. Temi Popoola as the CEO of NGX and Ms. Tinuade Awe as CEO of NGX REGCO were recently announced.
The NSE believes that these appointments will support its vision to be “Africa’s preferred Exchange Hub” and looks forward to consolidating on the benefits of demutualisation in the coming year. The Exchange also reiterated its intention to aggressively pursue cutting-edge products and services, access new markets and deliver better value to its stakeholders.”