NSE re­cov­ers N1.44bn shares for in­vestors

The Punch - - CAPITAL MARKET - Sto­ries: Fey­isayo Popoola

The Nige­rian Stock Ex­change said it was able to re­cover N1.44bn worth of shares for in­vestors in the year 2019.

The Chief Ex­ec­u­tive Of­fi­cer, Nige­rian Stock Ex­change, Mr Os­car Onyema, while speak­ing dur­ing the 2019 Mar­ket Re­cap/2020 Out­look, stated that the Ex­change fa­cil­i­tated the resti­tu­tion and re­cov­ery for in­vestors in 2019 as part of its mar­ket de­vel­op­ment strat­egy ex­e­cu­tion.

he added that the Ex­change re­vised the free float rules to en­hance liq­uid­ity among quoted com­pa­nies and stream­lined the list­ing process to re­duce the time to mar­ket for is­suance and list­ing of se­cu­ri­ties in or­der to drive more list­ings on the Ex­change.

Onyema added that the NSE was able to ad­dress the float is­sue by re­mov­ing the per­cent­age and in­tro­duc­ing naira amount, which was done for the pre­mium board and would be in­tro­duced in the main board soon.

Ac­cord­ing to him, the Ex­change is open to new ideas and dis­cus­sions on how to bet­ter tackle the is­sue.

he said, “We be­lieve the way we have tack­led the float is­sue is the ap­pro­pri­ate way to do it, es­pe­cially in a down mar­ket.

“We also bench­marked our pro­cesses against other mar­kets in the world to ar­rive at some poli­cies.”

Onyema, while re­view­ing the 2019 mar­ket per­for­mance, said de­spite challenges faced, the NSE con­tin­ued to ex­e­cute on the its 2018 – 2021 cor­po­rate strat­egy, which was geared to­wards en­hanc­ing cus­tomer ex­pe­ri­ence across the value chain, re­or­gan­is­ing for suc­cess and cap­i­tal­is­ing on mis­sion crit­i­cal strate­gic ini­tia­tives such as the de­mu­tu­al­i­sa­tion of the Ex­change.

he said the NSE had re­ceived a ‘No Ob­jec­tion’ from the Se­cu­ri­ties and Ex­change Com­mis­sion, hav­ing met the nec­es­sary re­quire­ments.

Ac­cord­ing to him, the no ob­jec­tion will en­able the NSE to pro­ceed to the fi­nal stages of the de­mu­tu­al­i­sa­tion process, which in­cludes seek­ing for­mal ap­proval from mem­bers.

he added that post de­mu­tu­al­i­sa­tion, the NSE would con­tinue to lever­age its vast net­work of stake­hold­ers, in ad­di­tion to de­vel­op­ing new strate­gic part­ner­ships with the goal of de­liv­er­ing bet­ter prod­ucts and ser­vices to cus­tomers.

Onyema said, “Although the Nige­rian Stock Ex­change’s All share in­dex posted a neg­a­tive re­turn of -14.60 per cent to close the year at 26,842.07, it reached a year high of 32,715.20 in Fe­bru­ary 2019.

“Fur­ther­more, the eq­uity mar­ket cap­i­tal­i­sa­tion in­creased by 10.55 per cent to N12.97tn from N11.73tn in 2018, largely due to sus­tained pri­mary mar­ket ac­tiv­i­ties through­out the year, most no­tably the list­ings of MTN Nige­ria Com­mu­ni­ca­tions Plc and Air­tel Africa.

“In the year 2020, do­mes­ti­cally, mar­ket sen­ti­ments may be buoyed by a steady and stable re­cov­ery in the do­mes­tic econ­omy, along­side con­tin­ued sus­tain­abil­ity in mon­e­tary pol­icy.”

he added that the sign­ing into law of Nige­ria’s Fi­nance Bill 2019 and im­ple­men­ta­tion of the 2020 bud­get might have pos­i­tive im­pact on com­pa­nies’ earn­ings, as well as con­sumer spend­ing.

he noted that ac­cord­ingly, the Ex­change would con­tinue to ad­vo­cate busi­ness-friendly eco­nomic en­vi­ron­ment, work­ing in con­junc­tion with both the pub­lic and pri­vate sec­tors.

•L-R: Head, Trad­ing Busi­ness Di­vi­sion, Nige­rian Stock Ex­change, Jude Chiemeka; Chief Ex­ec­u­tive Of­fi­cer, Os­car Onyema; Head, Shared Ser­vices Di­vi­sion, Bola Adeeko; and Head, List­ings Busi­ness Di­vi­sion, Olu­mide Bolu­mole, dur­ing the NSE 2019 Mar­ket Re­cap and 2020 Out­look ses­sion at the Ex­change in La­gos... on Mon­day. Photo: Stan­ley Ogidi

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.