As the Nigerian capital market shows signs of improved investor confidence, the Nigerian Stock Exchange (NSE) yesterday reassured retail investors in the market saying “our job is not done yet.”
Oscar Onyema, CEO, Nigerian Stock Exchange (NSE) who spoke at the ‘retail investors’ clinic for shareholders association’ said that the improved regulatory environment and performance of quoted companies from 2012 till date, has positively impacted on stock market prices and overall market indices.
The programme aimed to enhance retail investors’ understanding of the basics of investing around portfolio construction, asset allocation and risk diversification.
Oscar, who noted that the Exchange has adopted a zero-tolerance stance on dealing member firms and listed companies violations, said the Bourse proposed several rules to codify the accepted mode of engagement in our market.
“These rules are available on our website. Two that might be of particular interest to you are our proposed Related Parties Transaction rule and rules around the conduct of AGMs,” he added.
The CEO also noted that all vital performance metrics in the Nigerian Capital Market have bounced back from the critical low to which they backslid in 2008 and have generally remained upbeat with the market capitalisation of listed equities on the Nigerian Stock Exchange (NSE) increasing by over 47.33% in the past year alone.
Also, the average daily value of shares traded went up by 57.36% from N2.65billion recorded in 2012 to N4.17billion in 2013. Year-to-date (YtD) 2014, local investors participation in our market stands at over 50% (50.72%) compared to the 49.28% foreign participation.
“It can be recalled that as at end of first quarter 2013, local investors accounted for close to 60% of transaction value in the Nigerian capital market, while foreign investors were responsible for about 40%; this turn of events contrasted sharply with the circumstances between 2009 and the first half of 2012 when local investors eschewed the market on account of losses they sustained in the aftermath of the near meltdown of 2008 with transaction values being controlled by foreign investors to the tune of 80% in certain instances,” Oscar noted.
He stated: “The ‘Investor Clinic’ aspect of the programme, which is a flag ship product for our financial literacy efforts, has been delivered in partnership with stellar organisations such as Morgan Stanley, Stanbic IBTC, Greenwich Trust and FBN Capital, just to name a few. These have primarily been focused on particular segments of the investing community to discuss the finer details of investing and to shed more light on the capital market eco system. The two clinics convened last year, targeted professional bodies and religious associations; now we have shifted gear to a very important constituency, the registered shareholders association, as ably represented.”
The NSE CEO noted that in line with one of the Exchange’s core strategic pillars for enhanced market performance and growth – that is instituting a ‘strong investor protection’ framework, “we have re-constituted the Board of Trustees for the Investor Protection Fund (IPF).
IHEANYI NWACHUKWU
