Story by Kayode Tokede and Olabode Jegede
The Chief Executive Officer, Nigerian Stock Exchange, (NSE), Mr. Oscar Onyema is set to hold its 2018 Market Recap & Outlook for 2019 on next week Monday in Lagos.
This annual event is for Onyema to brief 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, 2019.
“With the significant progress made by the exchange in 2018 in areas of thought leadership, product development, regulation, sustainability, protection of investors fund amongst others, attendees will have the opportunity of learning more of the 2019 plans,” the statement attributed to CEO of NSE explained.
The Exchange traded mostly on the negative note in 2018, closing the year with a negative average full-year return of -17.81 per cent.
Aggregate market value of all quoted equities at the NSE declined by N1.89 trillion in 2018. Most quoted companies closed around their lowest prices as political risks, macroeconomic uncertainties and attractive yields in advanced economies kept investors nervous for the most part of the year.
The 2018 year-end performance was a major reversal for a market that had posted full-year return of 42.3 per cent in 2017.
With net capital appreciation of N4.36 trillion in 2017, the market had set out gaily in 2018 with a stride. Quoted equities netted capital gain of N1.38 trillion by the end of first quarter of 2018 with equities capitalisation rallying to hit all-time high of N15.3 trillion in January 2018.
The NSE All Share Index (ASI)- the common value-based index that tracks share prices at the NSE, peaked in January 2018 at 43,041.54 basis points, its highest index points since October 2008.
Meanwhile, Onyema speaking on objective of taking a vigorous and adaptive approach to strategy execution at the 2017 Market Recap and 2018 Outlook, 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 organization for a demutualized struc-ture”.
Speaking on the prognosis for 2018, Onyema had 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”.
On its part, the NSE is on track to become a more agile and flexible demutualized securities exchange. “We are hopeful that the Demutualization Bill will be signed into law in 2018, and are working assiduously with our Advisers to fine-tune outstanding aspects of the demutualization project as well as providing clarity and transparency on the process via regular engagement with all our valued stakeholders”.
“In 2018, NSE will 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. We also plan to maintain our role as an advocate for the adoption and implementation of market friendly policies”.