• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      The bull run still has legs despite inflation concerns

      6 hrs

      Analyst Insight

      Incorporating three lines of defence in data privacy schemes

      6 hrs

      Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

Frontpage Markets

Nigeria bourse chief pleads caution on 2021 growth expectations

January 20, 2021216 views0 comments

By Charles Abuede

 

The Nigerian Stock Exchange (NSE) chief executive officer, Oscar Onyema, has said that market growth expectations for 2021 should be noted with caution as the second wave of the coronavirus pandemic in Nigeria and around the globe may slow down renewed social and economic activities in the world.

Nigeria bourse chief pleads caution on 2021 growth expectations

Read Also:

  • Unilever Nigeria to complete tea business separation by end of 2021
  • Nigeria bourse in red as selloffs in banking, consumer goods stocks see…
  • Lions’ Den 2021: An opportunity for promising Nigerian entrepreneurs
  • African Alliance paid N967m in claims in first 40 days of 2021, MD reveals
  • Former LCRI chief defends 1000mt wheat seed importation by CBN, FMAN

Onyema made the assertion while making a presentation at the annual 2020 Market Recap and 2021 Outlook hosted virtually by the Exchange and monitored by Business A.M.

At the virtual forum set up to review its performance in the just-concluded year 2020 and proffer expert predictions for the Nigerian capital market in 2021, Onyema said: “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses but largely remained resilient and orderly amid rising uncertainty.”

“For The Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields propelled a year-end bull run. Of the 93 global equity indices tracked by Bloomberg, the NSE All-Share Index (ASI) emerged as the best-performing index in the world, surpassing the S&P 500 (+16.26%), Dow Jones Industrial Index (+7.25%), and other global and African market indexes, to post a one-year return of +50.03%,” he stated.

Onyema’s presentation highlighted the performance of the local bourse in the historic year 2020 which at the close of the year recorded a 62.42 per cent growth in market capitalisation to N21.06 trillion, from N12.97 trillion in 2019, while the market recorded an uptick of 7.25 per cent to N1.03 trillion in 2020 as turnover from N0.96 trillion in the previous year. In the year, the NSE industrial index led the pack as the best performer followed by the premium board index.

The Nigerian equities market got off to a sturdy start in 2020, returning 10.4 per cent by the eighth trading session. But by the tenth month in 2020, the equities market entered a much-awaited bull run which was buoyed by the formal announcement of the U.S president-elect, unattractive fixed income yields, and better-than-expected corporate earnings, the NSE ASI recovered from Q1’20, to close the year at 40,270.72 (+50.03%) and expunge losses of -14.90 per cent recorded in 2019.

During the 2020 remarkable year-end run, the All-Share Index gained 6.23 per cent in a single trading session which triggered a 30-minute halt of trading on all stocks for the first time since the NSE Circuit Breaker was introduced in 2016 to safeguard market integrity in periods of extraordinary volatility.

Also worth mentioning is the fact that for the second successive year, transactions in the equity market were dominated by domestic investors who accounted for 65.28 per cent of market turnover by value with retail recording 44.98 per cent and institutional investors accounting for 55.02 per cent; while foreign portfolio investors accounted for 34.72 per cent.

On the performance of the fixed income market, the NSE helmsman revealed that there was a significant increase in 2020 which saw the bond market capitalization rise by 35.52 per cent from N12.92 trillion in 2019 to N17.50 trillion.

On the outlook for the year 2021, Onyema stated that there is an expectation of a marginal reopening of business activities and the normalisation of the nation’s economy as well as the drive for revenue diversification by the government.

“The year has started on a positive note as the ASI has already returned 2.0% after 11 trading sessions. We expect the marginal reopening of businesses, normalisation of the economy and revenue-diversification drive of the Nigerian government to elicit positive sentiments throughout the year. Our growth expectations should be noted with caution, as the recent second wave of COVID-19 in Nigeria and globally, may slow down renewed social and economic activities,” Onyema said.

He also spoke about the demutualisation of the NSE, noting that as it transitions to a demutualised exchange group, the appointments of Temi Popoola as the CEO of NGX and Tinuade Awe as CEO of NGX REGCO were recently announced.

According to Onyema, the NSE believes that these appointments will support its vision to be ‘Africa’s preferred Exchange Hub’ and it looks forward to consolidating on the benefits of demutualization in the coming year.

Razia Khan, managing director and chief economist, Africa and Middle East, Global Research, Standard Chartered Bank, also speaking at the event, provided insights into the global macroeconomic environment and the outlook and opportunities in the Nigerian capital market.

Khan said that the local equities market will rally further in 2021 as yields environment continue to remain low as the building blocks are in place to sustain the rally. She also revealed that the market can become less FX sensitive as an asset class than the bonds.

Meanwhile, Oscar Onyema also reiterated the Exchange’s objective to aggressively pursue innovative products and services, access new markets and deliver better value to its stakeholders.

 

 

Share on Facebook Tweet Email
PreviousSelloffs in BuaCem, Access, UBA push Nigeria bourse under waters
NextAccess Bank unfolds ambitious expansion into Africa, global markets leveraging HoldCo structure

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Social Media Helps Global “Dream Teams” Come Together
  • What’s Next for Jeff Bezos and Amazon?
  • What Makes Some Ads More Shareable Than Others?
  • Sincere commitment to reduce corruption in Nigeria
  • FGN: A confused investor in the oil industry

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

US extends travel ban to UK

Frontpage March 15, 2020

1
2

Nigeria’s BoI disburses $82m for cabotage vessels procurements 

Frontpage June 19, 2019

3

Lagos port operators to get 30% waiver on throughput charges

Frontpage June 29, 2019

4

Nigerian equities retreat as bears take over after long gaining streak

Frontpage January 21, 2019

5

Signing of bill in UK: Nigerians attack Buhari

Frontpage November 6, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.