NSE Recovers N1.44bn Shares For Investors In 2019
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.