LAGOS – Mr Oscar Onyema, Chief Executive Officer (CEO), the Nigerian Stock Exchange (NSE) has admitted that the one trillion dollars targeted for capitalisation by 2016 was no longer feasible.
Onyema made the assertion at the “NSE 2014 market review and outlook for 2015” in Lagos.
He said that the national economic challenges and the slow market recovery made the capitalisation projection impossible.
“The targeted 2016 capitalisation was set across five asset classes and would not be possible to achieve considering present realities.
“We no longer believe that it is possible to meet the target, given where we are today.
“But we believe that our new strategy up to 2019 has more realistic targets and we are approaching it now in a different perspective,” Onyema said.
The NSE CEO said that the Exchange would focus more on establishing the right market structure to boost investor confidence and attract new listings in the years ahead.
Onyema said that the NSE would introduce diverse products to enhance investment diversification and ensure an enabling policy that supports market confidence, to ensure market based stability.
It will be recalled that some financial experts earlier expressed doubts on the Nigerian Stock Exchange (NSE’s) ability to actualise its projected one trillion dollar market capitalisation by 2016.
They said in separate interviews in Lagos that barely one year to the deadline; the targeted capitalisation would not be achievable following current market realities and national economic challenges.
According to them, the dwindling oil price, insecurity challenges, 2015 general election uncertainties, non-listing of multinationals and exit of foreign portfolio investors, would impact negatively on the NSE projections.
Mr Emeka Madubuike, President, Association of Stockbroking Houses of Nigeria (ASHON), said that the target was set based on certain parameters which centered on anticipated increase in new listings.
Madubuike said that the parameters include increase in the number of new listings across five asset classes, increased order flow in the five asset classes and the operation of a fair and orderly market, based on just and equitable principles.
He said that the current national economic realities and in the capital market were beyond the exchange, adding that, the target would only be attainable if the parameters were met.
The ASHON boss said that government needed to take the market as the critical part of the economy to achieve set goals.
“We hope that elections will come and go for people to ascertain the direction of the economy and the market,” Madubuike said.
Mr Harrison Owoh, the Managing Director, HJ Trust & Investment Ltd., said that the rising security challenge would be a hindrance to the NSE’s projections.
Owoh said that economic and political stability and friendly investment laws were paramount to the attainment of the one trillion market capitalisation by 2016.
