NSE Facilitates N10.3tr Investment in Equities, Bonds in 10 Years

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By Goddy Egene

The Nigerian Stock Exchange (NSE) facilitated the investment of N10.341 trillion in equities and debt bonds in the Nigerian capital market in the last 10 years, data obtained from the NSE has shown.

The data obtained by THISDAY showed that the sum was investment between 2008 and 2017.

An analysis of the figures showed that at N2.379 trillion, 2008 accounted for the highest amount during the period. This was the year when the market experienced an unprecedented boom following the banking sector recapitalisation.

This was closely followed by 2014, when investors traded N1.339 trillion and 2017, which accounted for N1.273 trillion.

The local bourse recorded N1.044 trillion in 2013 and N953 billion in 2015. A total of N797 billion was invested in 2010, just as N686 billion was staked in 2009. The year 2012 accounted for N658 billion, while 2011 recorded N635 billion. Investors traded N577 billion in 2016.

The NSE has been providing a platform for investors to invest in stocks and bonds as well as for corporates and government to raise funds for their operations and developmental projects respectively.

After three years of decline the stock market rebounded last year by gaining 42.3 per cent, while investors traded N1.273 trillion securities.

Also, the exchange ended 2017 with  a total income of N8.30 billion, representing a growth of 86 per cent, as against the N4.46 billion in 2016. Also, its operating surplus before tax soared by 5,629 per cent from N27 million to N3.82 billion in 2017.

 The Chief Executive Officer of NSE, Mr. Oscar Onyema said: “This positive performance, after the significant headwinds witnessed over the past two years, affirms the resilience of our market and its potential as a catalyst of economic growth in Nigeria and the hub for Africa.

“Focus on executing our robust strategy of cost efficiency, products and revenue diversification, as well as innovative and improved operational delivery, underpins this strong performance.”

Onyema explained that buoyed by improved ease of market entry and exit for foreign portfolio investors, transaction fees jumped by 130 per cent to N3.6 billion in 2017, accounting for 45 per cent of the group’s total income last year.

According to him, listing fees appreciated by 110 per cent from 2016 to the year under review, indicating a revival in primary market activity.

“Last year, we reiterated the need to diversify the exchange’s income streams and I am pleased by the positive results we have recorded in this regard.

“Our market services business consisting of technology and market data services continue to perform impressively. More telling is the fact that market services income has continued to grow despite the market down-cycle which significantly impacted our core trading and listing businesses in 2015 and 2016,” Onyema said.