NSE unfolds four-year strategic plan to improve market liquidity, velocity

The Chief Executive Officer (CEO) of the Nigerian Stock Exchange (NSE), Mr Oscar Onyema, on Tuesday unveiled the four-year strategic plan shore up market liquidity at the 2017 Market Recap and 2018 Outlook presentation in Lagos.

Onyema said that the exchange’s focus in the next four years would be geared toward satisfying customers need, boost domestic retail segment penetration and enhance its demutualised structure.

He lamented poor retail participation on the exchange, revealing that only seven million investors in a country of 180 million were on the exchange.

He said that the strategic agenda was in line with the changing dynamics in both the operating environment and the global exchange landscape.

Onyema added that the 2018 to 2021 strategic plan was in response to evolving economic conditions and rising domestic competition.

He said that activities in the market were dominated by foreign and local institutional investors with retail investors accounting for only 37 per cent.

The CEO said that the exchange would partner with market stakeholders on new initiatives to boost investors’ literacy about the exchange, stressing that NSE would establish a retail coverage department for the publicity of investment products to support the investing public for financial mobility and wealth creation.

According to him, the exchange is on track on its effort to becoming a more agile and flexible demutualised securities exchange.

“We are hopeful that the Demutualisation Bill will be signed into law in 2018, and are working assiduously with our advisers to fine-tune outstanding aspects of the demutualisation project.

“The exchange will launch Exchange Traded Derivative (ETD) instruments in 2018 and engage with the government on privatisation 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,’’ Onyema said.

On Investor Protection Fund (IPF), Onyema said that the exchange paid out a sum of N8.2 million to some investors through the initiative.

Onyema explained further that 92 per cent of the claims approved by IPF board were below the maximum N400,000 maximum payment threshold, noting that investors’ protection was paramount to the exchange.

Meanwhile, investors’ sentiment on the  Exchange on Tuesday remained positive with 46 stocks on the gainers chart as against 16 stocks that declined.

The top performing stocks were First Bank Nigeria Holding, FBNH gaining 10.2 percent or N1.19 per share to close at N12.85 per share, followed by Sterling Bank Plc, which rose by 10 percent or 20 kobo per share to close at N2.20 per share.

Diamond Bank Plc up by 10 per cent or 26 kobo per share to close at N2.87 per share, Transcorp gained 9.95 percent or 21 kobo per share to close at N2.32 per share and Wema Bank Plc rose by 9.76 percent or 8 kobo per share to close at 90 kobo per share.

On the other hand,  Honeywell Flour Mills Plc led the losers chart, dropping by six percent or 21 kobo per share to close at N3.30 per share. It was followed by Law Union Insurance which declined by 4.5 percent or 4 kobo per share to close at 84 kobo per share , while NPF Microfinance Bank Plc which nosedived by 4.2 percent or 7 kobo per share closed at N1.60 per share .

AG Leventis Plc depreciated by 4 percent or 3 kobo per share to close at N72 kobo per share and Wapic Insurance Plc dropped by 3.64 percent or 2 kobo per share to close at 53 kobo per share.