Nigeria’s stock exchange (NSE) is working “very closely” with South African cell operator MTN on a listing of its shares in the country this year, the head of the bourse said on Thursday.
Chief Executive Officer, NSE, Oscar Onyema at the 2016 NSE market recap & outlook for 2017 in Lagos on Thursday, expressed that “The pressure on MTN has never been higher to list,” NSE told a business conference. “There’s a project team working with them.”
Onyema said he expected MTN’s listing this year to drive the IPO market which has virtually dried up. He also said local airline Med-View would list its shares on January 30.
Foreign inflows into Nigeria’s stock market fell sharply last year, Onyema said, citing a loss of confidence in the country’s exchange rate regime. He said current currency reforms will determine market outlook this year.
NSE lost 6.2 per cent last year reflecting an economic crisis in Africa’s biggest economy, caused by low oil prices. In dollar terms stocks fell 40 per cent as the local currency weakened sharply.
The naira lost a third of its official value against the dollar in 2016 after the central bank scrapped its currency peg in a bid to alleviate dollar shortages.
Onyema said the bourse will fast-track the listing of exchange traded derivatives this year to help investors manage risk, noting that it has created a counterparty clearing house to support the process.