Broker Calls for Collaboration to Attract More Investors to Market

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Goddy Egene

A former Chairman of Association of Stockbroking Houses of Nigeria (ASHON), Mr. Emeka Madubuike, yesterday called on the Nigerian Stock Exchange (NSE) and other stakeholders to collaborate more in a bid to attract more retail investors to the nation’s capital market.

Speaking at the exchange in Lagos, during the NSE Chief Executive Officer’s 2018 Market Recap and 2019 outlook presentation, Madubuike, who is the Managing Director of Compass Investment and Securities Limited, said rather than working in silos, the NSE, stockbroking community and other stakeholders should work together and attract more investors to the market.

“Despite assurances of reaching out to more retail investors, the NSE has not done much. I believe the NSE should work with intermediaries such as stockbrokers and organise outreaches throughout the country to get more investors to the market,” he said.

Responding, the CEO of NSE, Mr. Oscar Onyema said while there was the need for collaboration in the market, he said there are better ways to reach the investors using technology.

Meanwhile, reviewing the performance of the stock marketin 2018, said equity market started the year on a high, with the All Share Index (ASI) reaching a 10 -year peak of 45,092.83 in January.

“This was largely driven by the positive performance of the ASI in 2017 which emerged the best in Africa. As we approached the second quarter, political risks, oil price volatility and rising global yields resulted in bearish sentiments that saw the ASI and equity market capitalisation fall by 17.81 per cent and 13.87 per cent to close at 31,430.50 and N11.73trillion respectively.”

According to him, while listing activity remained relatively low during the year, (one listing and four delistings) equity turnover remained relatively stable, marginally declining by 5.45 per cent to N1.20 trillion.

“Turnover velocity inched up 0.91 percentage points to 10.25 per cent and likewise, the size of volumes traded in the period increased by 0.96 per cent to 101.43billion with the Financial Services sector being responsible for the highest traded volume and value. In the year under review, foreign portfolio investments outpaced domestic participation by 1.73 per cent, accounting for 50.87 per cent of total transactions, while domestic transactions accounted for 49.13 per cent. Within Domestic Institutional order flow was 56 per cent while retail order flow was 44 per cent.”