Download NSE boss pledges to sustain capital market reforms

NSE boss pledges to sustain capital market reforms
THE Chief Executive Officer of Nigerian Stock Exchange (NSE), Mr.
Oscar Onyema, yesterday pledged to sustain the on going reforms in
the market as part of strategies to accelerate Nigeria and Africa’s
economic development.
In his presentation to the House of Representative Committee on
Capital Market and Institutions, Onyema said that it was unfortunate
that the market lost approximately N1.4 trillion in market capitalisation
in 2011.
He said: “As the reforms continue and with government support, we
remain confident that by year’s end, the market will be well on its way
to recovering its vibrancy.”
Onyema, according to a news statement issued by the NSE recently,
promised that the Council and the management team of the Exchange
would continue to carry out market reforms to champion the
acceleration of Nigeria’s and Africa’s economic development.
According to him, “the new Nigerian Stock Exchange provides a vehicle
for long-term ‘saving’ and ‘borrowing’, and hence, efficient use of
financial resources. The current market cycle presents an incredible
opportunity for investors.”
He said that the nation’s capital market had emerged stronger and
more focused from the financial meltdown of 2008, revealling that in
the 13 years before the 2008 financial meltdown, the Nigerian equity
market recorded over 1,200 per cent return on investment.
Explaining further, he said: “We believe that these losses were driven
by the soft global economy, including the debt crises in the United
States of America (USA) and European Union – EU accounts for 22 per
cent of foreign portfolio investment into Nigeria; the Nigeria banking
crisis (including nationalisation of three banks in August).
“The lack of investor confidence triggered by losses incurred during the
financial meltdown of 2008/2009; the lack of liquidity and depth in the
market; concerns about the security situation in the country and rising
interest rates (MPR has been raised in the past three months from
eight per cent to 9.25 per cent, and just this week, to 12 per cent)
which is encouraging investors to shift from equity to fixed income
investments.”
By Moses Ebosele
GUARDIAN, 19 March 2012