NSE’s Oscar Onyema reviews 2017 market performance, gives outlook for 2018

NSE CEO Oscar Onyema says the political activities, currency movements will have some effect on the markets this year but he expects that they will be short lived as performance of the business activities will ultimately determine market performance.

Wed, 17 Jan 2018 07:58:29 GMT

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AI Generated Summary

The key drivers of the market's performance in 2017 included the impact of the downturn and subsequent recovery, renewed investor confidence in the country, increase in foreign currency reserves, improvements in oil prices and output, and better overall stability in Nigeria.
Plans are underway to revamp the Alternative Securities Market (ASM) to focus on growth companies that require support but are more attractive for listings and investors.
The outlook for 2018 includes a focus on enhancing retail penetration, understanding customers better, and completing projects like dematerialization, introduction of exchange-traded derivatives, and leveraging emerging technologies to boost the exchange's impact on the economy.

The Nigerian Stock Exchange (NSE) has seen impressive market activities in recent days, with headlines proclaiming stocks on steroids and investors smiling all the way to the bank. In a recent interview with CNBC Africa, NSE CEO Oscar Onyema discussed the key drivers behind this performance and shared his outlook for the market in 2018. Onyema attributed the market's strong performance to several factors. He highlighted the impact of the recent downturn and subsequent recovery, stating that the market capitalization had dropped significantly during the downturn but has since shown signs of improvement. Onyema also pointed to renewed confidence in the ability of international money to flow in and out of the country, thanks to the investor-exporter window opened by the Central Bank of Nigeria. Additionally, he cited the increase in foreign currency reserves, improvements in oil prices and output, and better overall stability in the country as key factors driving the market's performance. On the topic of the Alternative Securities Market (ASM), which saw a less impressive performance compared to the main board, Onyema acknowledged the need for new strategies to achieve the objectives set for that category. He mentioned plans to focus more on growth companies that still require some hand-holding but are not as reliant on support as the current ASM companies. This shift in focus is aimed at attracting more listings and appealing to investors, thereby enabling companies to raise significant capital for growth. Looking ahead to 2018, Onyema expressed optimism about the market's outlook. He emphasized a focus on improving retail penetration, understanding customers better, and offering products and services that resonate with them. Additionally, he highlighted ongoing projects such as dematerialization, the introduction of exchange-traded derivatives, and the use of emerging technologies to expand the exchange's impact on the economy. While he noted that the emphasis is not solely on index performance, Onyema stressed the importance of market velocity and capitalization as measures of the market's strength. Overall, the NSE CEO remains bullish on the market's potential for the year ahead, citing a commitment to enhancing the exchange's offerings and driving growth in the market.