The Chief Executive Officer, the Nigerian Stock Exchange (NSE), Mr Oscar Onyema has expressed optimism that fixed income market would experience increased activity due to the COVID-19 pandemic.
Speaking at a virtual event to mark the 10th anniversary of Brand Africa 100 on Monday, he said that the federal government would embark on a lot of borrowings to finance the budget due to impact of COVID-19.
According to him, government will shift away from Eurobonds to domestic borrowings with significant emphasis on fixed income.
“We expect government and corporate companies to raise capital using different platforms, and capital market is one of it,” Onyema said.
He said the market would not witness any Initial Public Offering in the near-time due to narrative around COVID-19.
Speaking on the topic: “Impact of COVID on African financial markets”, Onyema said coronavirus had affected government, businesses and individuals in so many ways.
Onyema noted that the Exchange witnessed a lot of volatility with largest single day loss of five per cent at the wake of coronavirus pandemic.
He said that a lot of foreign investors exited the market in February when the first case of coronavirus was reported in Nigeria.
Onyema said the Exchange, which emerged as the highest stock market in terms of return having finished with 7.5 per growth in January, slid into negative territory due to COVID-19.
He said the market had showed some tremendous recovering across all the asset classes.
The NSE boss said investors were redirecting their investment into the capital market that offers higher returns due to foreign exchange challenges and fall in crude oil price.