Speaking at a virtual event with theme: the 2022 Market
Recap and 2023 Outlook, Popoola said the adoption of USSD will further simplify
the continent’s capital markets through integration with Afreximbank’s Pan
African payment settlement system.
He added that the Exchange is targeting the development of
new products aimed at attracting the lower rung of the Nigerian demography.
According to him, “NGX is also focused on increasing youth
participation with the creation of digital asset products powered by Blockchain
technology, non-depository receipts and overall increasing the pool of
available liquidity in the market.
“On strategic partnerships, we will be forging more with
development finance institutions, and banks, both local and international to
further develop the market. We aim to do more on trading where we improve data
dissemination to attract a more extensive investor base, especially from the
retail side.
“We will be using listings as a vehicle for meeting
strategic aspirations as the new dispensation come in through increased
advocacy and engagements.
“NGX sees sustainability as not just important but also a
profitable frontier of its business. Work is ongoing on developing a framework
for certifications in carbon credits trading, pending regulatory approval.
“Altogether, 2023 is likely to be a new dawn for the market
and the Nigerian economy as significant events take shape in the macroeconomic
and political environments.”
On the 2022 market recap, he noted that the bullish run
witnessed in the year might have been partly induced by the N4.3trillion in
listings recorded by NGX across equities and fixed-income markets.
He added that the raising of N2.54trillion of bond listings
for the Federal Government of Nigeria, as well as equity listings totaling
N1.35trillion from companies such as BUA Foods Plc and Geregu Power Plc had a
significant impact on the overall market performance.
The NGX boss emphasised that the value of the listings
showed the local bourse’s commitment to positioning itself as a premier
location for raising capital and its ability to facilitate a wide range of
transactions and attract a diverse range of businesses demonstrated its position
as a leader in financial market innovation and progress on the African
continent.
According to Popoola, NGX would take a flexible approach to
strategy execution in 2023, doubling down on its 2022 achievements and
expanding on several levers.
“As you know, the NGX Technology Board Listing Rules were
approved by the apex regulator, the Securities and Exchange Commission in
December 2022.
“With this, we aim to drive more technology companies to the
Exchange and deepen capital formation in the technology sector. We are
currently in consultations with stakeholders in the sector and are confident of
securing a few big names within the year.”
He said further that “In 2022, the equities market
performance was evidenced by the 19.98 per cent increase in the NGX All-Share
Index, which rose from 40270.72 to 51,251.06 just as the market capitalisation
also closed at a high of N27.92trillion, up from N21.06trillion the previous
year. The total turnover of trades in 2022 improved by 27per cent from N916bn
to N1.16trillion year-on-year from 2021.
“Market participation was heavily skewed to the domestic
investors. The Fixed Income market saw a slight uptick in turnover to
N3.89billion in 2022 from N3.53billion recorded in 2021. This represents a
10.20per cent YoY increase.
“The Exchange Traded Funds market capitalisation increased
from N7.35billion in 2021 to N8.42billion in 2022, representing a 14.56 per
cent increase in the market capitalisation.
Stanbic IBTC ETF 30 which tracks the performance of NGX 30
index was the best performing ETF in 2022, having began the year at N68.5 and
closed at N245, reflective of 257.66 per cent
returns. ETF transactions fell from N34.22billion in 2021 to
N211.02million in 2022. This represents a 99.38 per cent decline in ETF
turnover”.
“Altogether, this signalled a good year for the Exchange
despite global macroeconomic headwinds.”
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