The Nigerian Equity Market has continued to sustain its bullish spree from last week, raising hopes for a better 2020, with the All-Share Index advancing by 0.74% to settle at 29,633.58 basis points on Monday.
The total volume of trades increased by 23.96% to 348.24 million units, valued at N8.55 billion and exchanged in 5,377 deals.
ZENITH BANK PLC was the most traded stock by volume at 80.78 million units, while SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC was the most traded stock by value at N2.58 billion.
All Sector indices closed negative, save for the Insurance index which gained 0.30% and the Oil & Gas index which gained 7.00%.
The Industrial Goods index declined by 3.17%, Banking declined by 0.70% and the Consumer Goods index declined by 0.42%.
Market sentiment, as measured by market breadth, was negative as 21 stocks recorded declines while 16 stocks recorded gains.
CADBURY NIGERIA PLC declined most by 9.95% and TRANSCORP HOTELS PLC followed with 9.18% fall.
While MTN NIGERIA COMMUNICATIONS PLC appreciated by 10.00%, NPF MICROFINANCE BANK PLC appreciated by 9.68%, topping the gainers’ list.
Meanwhile, The Chief Executive Officer of The Nigerian Stock Exchange, Mr Oscar N. Onyema OON, has presented the key performance of the Exchange in 2019 and given a prognosis for the market in the New Year 2020.
Delivering his presentation, Mr. Onyema stated:
“The Nigerian capital market mirrored the performance of the larger economy, which continued its moderate path of recovery, growing by 2.28% (Q3’19).
“The Nigerian bourse witnessed the impact of various factors including: a weak macroeconomic landscape; fiscal and monetary policy direction; underwhelming trends in Foreign Portfolio Investments; concerns around the stability of the naira and moderate corporate earnings.
“While these factors led to a negative performance in the equity market during the year, our Fixed Income market performed exceptionally well, reflecting a flight to safety.”
Although the Nigerian Stock Exchange’s All Share Index (ASI or All Share Index) posted a negative return of -14.60% to close the year at 26,842.07, the ASI reached a year-high of 32,715.20 in February 2019.
Furthermore, the equity market capitalization increased by 10.55% to N12.97trillion from N11.73trillion in 2018, largely due to sustained primary market activities throughout the year, most notably the listings of MTN Nigeria Communications Plc and Airtel Africa.
The fixed income market performed well in 2019, as market capitalization increased by 20.42% to N12.92trillion from N10.72trillion in 2018. Turnover also increased by 389.26% when compared to 2018 although capital raising was dominated by the Federal Government, being responsible for 60% of bond issuances during the period in a bid to finance fiscal and infrastructure deficits.
Some of the ground breaking achievements for the year include:
- Listing of Access Bank Plc’s N15bn Green Bond, the first of its kind to be issued by an African corporate.
- Listing of North South Power Company Limited’s N8.5bn corporate infrastructure Green Bond, which was oversubscribed by 60%, with firm commitments from twelve institutional investors including nine pension funds. Capital raising by corporates increased by 321.61% with a total of N132.68billion raised in 2019.
- The Exchange signed an MoU with the Luxembourg Stock Exchange (the largest Green Bond listing platform in the world) at the World Federation on Exchanges (WFE) conference held in Singapore. The MoU is geared towards promoting cross-listing and trading of Green Bonds in Nigeria and Luxembourg. Relationships of this nature will foster competition, and further enhance the ability of The Exchange to deliver greater value to our stakeholders.
In the year under review, the Exchange recorded milestone listing of big corporates such as:
- listing of MTN Nigeria Communications Plc by introduction on the Premium Board;
- cross border listing of Airtel Africa on the Main Board, alongside London Stock Exchange;
- SAHCO Plc listing by IPO on the main board;
- launch of the Greenwich Alpha ETF focused on tracking the NSE 30 index.
The Exchange sustained its thought leadership and advocacy role in the capital market by:
- organizing the first ever Hackathon designed to encourage Tech enthusiasts to develop innovative Fintech solutions;
- hosting two interactive sessions in the Insurance and Consumer Goods sectors;
- organizing the Fixed Income Trading Workshop to enhance the capacity of dealing members;
- holding the inaugural edition of the Islamic Finance in Nigeria (IFN) Forum in partnership with REDmoney Group.
Presenting The Exchange’s efforts in 2020, Onyema said,
“The year 2020 has started on a good note, with the NSE ASI recording a 9.41% improvement year-to-date as at January 10. We intend to work closely with our stakeholders to sustain this growth trajectory.
“As African Champions, we will maintain momentum in executing the NSE’s 2018 – 2021 Corporate Strategy in our efforts to elevate the prominence of Africa’s global financial markets.”
In its aspiration to become a more agile and demutualized Exchange, and pursuant to the SEC’s ‘No Objection’ rule, The Exchange will proceed to the next steps, which include seeking formal approval from its members on demutualization Scheme.
While keeping an eye on the strategic intent post-demutualization, The Exchange commits to leveraging on its vast network of stakeholders, in addition to developing new strategic partnerships to deliver better products and services to the investing public.
Amaka E. Nliam