The Chief Executive Officer of The Nigerian Stock Exchange, Mr. Oscar Onyema, has said that the swift approval and implementation of the 2019 budget will have a positive impact on companies’ earnings as well as consumer spending.
The NSE boss,who stated this during the 2018 Market Recap and Outlook for 2019, projected that the uncertainty in the crude oil prices and Nigeria’s forthcoming general elections will define investors’ sentiments in the first half of the year, saying there will be volatility in the market, a situation that is expected to improve by the second
quarter.
According to him, the Nigerian’s economy in 2018 witnessed a slight recovery, which grew by 1.81 per cent in real terms as at the third quarter of 2018. He attributed the growth to macroeconomic stability and demonstrated effort by the Central Bank of Nigeria to control inflation.
Onyema, however, recounted how the market started out on a positive note last year, only to become negatively influenced by the decline in oil prices, political risks and rising global yields.
“The NSE equity market started the year on a high note, with the All Share Index reaching a ten-year peak of 45,092.83 in January. This was largely driven by the positive performance of the ASI in 2017 which emerged the best in Africa. As we approached the second quarter, political risks, oil price volatility and rising global yields resulted in bearish sentiments that saw the ASI and equity market capitalization fall by 17.81 per cent and 13.87 per cent to close at 31,430.50 and N11.73trillion respectively,” he said.
He noted that the equity turnover remained relatively stable in 2018 despite the fact that four companies were delisted, only one listing, and a marginal 5.45 per cent decline to N1.20 trillion.
“On a positive note, market capitalisation increased by 11.75 per cent to N11.17 trillion up from N9.10 trillion,” he added.
Speaking further, he said, “We have strengthened our government engagement efforts on privatisation and listing of state-owned enterprises, and we expect to take advantage of opportunities within this space during the year. The NSE will continue to collaborate with stakeholders in the public and private sector.”
