The equities market segment of The Nigerian Stock Exchange (NSE) gained N2.29 trillion or 16.8 per cent owing to increased foreign investors’ participation most especially in blue chips companies, InsideBusiness can report.
The equities market opened 2018 at N13.6 trillion to close January 31, 2018 at N15.89 trillion.
Major market indicator, NSE All-Share Index (NSE ASI) gained 6,100.46 basis points or 15.96 per cent to close January at 44,343.65 basis points from 38,243.19 basis points the equities market had opened this year.
NSE recovered from the macroeconomic overhang of the commodity downcycle to become the third best performing market in 2017 globally, with a 42 per cent return in the NSE ASI index.
The Central Bank of Nigeria (CBN) monetary policies( introduction of Investors & Exporters Foreign Exchange Window, among others windows) resulted in increased liquidity in the foreign exchange market.
Early in the year, The Chief Executive Officer, NSE, Mr. Oscar Onyema had noted that the outlook for the Nigerian capital market is encouraging.
According to him “Indeed, to some extent, political activities and currency movements will have some effect on the market, but we expect that such impacts will be short lived and the performance of the underlying business activities will ultimately determine market performance”.
“On its part, the NSE is on track to become a more agile and flexible demutualized securities exchange. “We are hopeful that the Demutualization Bill will be signed into law in 2018, and are working assiduously with our Advisers to fine-tune outstanding aspects of the demutualization project as well as providing clarity and transparency on the process via regular engagement with all our valued stakeholders”.
“In 2018, NSE will launch Exchange Traded Derivative instruments and continue to engage with the government on privatization and listing of state owned enterprises in collaboration with the private sector. We also plan to maintain our role as an advocate for the adoption and implementation of market friendly policies”.