Nigeria equities’ turnover rises 121%, grosses N1.3trn in 2017

Nigerian equities’ turnover rose sporadically in 2017 by 121 percent from N0.58 trillion to gross N1.3 trillion, according to the Nigerian Stock Exchange (NSE).

Oscar Onyema, the chief executive officer of the NSE, who briefed stockbroking community, analysts, media and other stakeholders Tuesday, attributed the turnover growth partly to the Central Bank of Nigeria (CBN’s) monetary policies, which resulted in increased foreign exchange liquidity.

Onyema noted in his presentation on the performance of the market in 2017 that the NSE recovered from the macroeconomic overhang of the commodity down-cycle to become the third best performing market in 2017 globally, with a 42 percent return in the NSE ASI index.

He stated that IPO activity in the year remained mute, even as there were several other positive indicators including the revival of supplementary listings and the return of new issuances. He added that the value of supplementary listings increased by 27 percent, bringing the total value of equity issues in 2017 to N408 billion.

On bonds, Onyema remarked that the NSE fixed income market recorded mixed performance.

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“New bond issuances increased over the previous year, while bond yields gradually moderated from 2016 levels amidst easing inflation and greater FX stability. Yields across various tenors declined between 0.4 percent and 1.5 percent, and market turnover declined by 24 percent in 2017, as investors sought higher returns in alternative product classes,” he said adding that supplementary issuances by the Federal Government saw bond market capitalization increase by 34 percent year-on-year.

“The NSE’s ETF market witnessed increased activity across key metrics in 2017, recording a 272 percent year-on-year growth in trade volumes, 33 percent growth in turnover and a 40 percent year-on-year increase in market capitalization to close the year at N6.69 billion.”

The NSE chief executive also noted that the exchange made steady progress on its strategic focus areas set out at the beginning of 2017, adding that 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.”

On the outlook for the market in 2018, Onyema noted that it 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.”

He said in 2018, NSE would launch Exchange Traded Derivative instruments and continue to engage with the government on privatization and listing of state-owned enterprises in collaboration with the private sector.