Home Business Nigerian fixed income market grows 20.42% in 2019

Nigerian fixed income market grows 20.42% in 2019

29
0
L–R: Alhaji Rasheed Yusuf, Doyen of the market; Jude Chiemeka, Head, Trading Business Division, The Nigerian Stock Exchange (NSE); Oscar N. Onyema, OON, Chief Executive Officer, NSE; Bola Adeeko, Head, Shared Services Division; and Olumide Bolumole, Head, Listings Business Division, NSE at the NSE 2019 Market Recap and 2020 Outlook session which held at The Exchange, Lagos on Monday.

Despite the downtrend in the Nigerian equity market in 2019, the country’s fixed enjoyed upturn, as market capitalization increased by 20.42 per cent to N12.92 trillion from N10.72 trillion in 2018,  the Chief Executive Officer of The Nigerian Stock Exchange (NSE), Mr Oscar Onyema, disclosed on Monday.

Speaking at the Exchange’s 2019 Market Recap and Outlook for 2020 held in Lagos, Onyema explained turnover also increased by 389.26 per cent when compared to 2018, although capital raising was dominated by the Federal Government, being responsible for 60 per cent of bond issuances during the period in a bid to finance fiscal and infrastructure deficits.

Last year, Access Bank listed N15bn Green Bond, which was the first of its kind to be issued by an African corporate.

“Listing of North South Power Company Limited’s N8.5bn corporate infrastructure Green Bond, which was oversubscribed by 60 per cent, with firm commitments from twelve institutional investors including nine pension funds. Capital raising by corporates increased by 321.61 per cent  with a total of N132.68Bn raised in 2019,” he stated.

Giving insight the performance of the market last year, the NSE boss pointed out that it posted a negative return of -14.60 per cent to close the year at 26,842.07, despite the ASI reaching a year-high of 32,715.20 in February 2019.

“Furthermore, the equity market capitalization increased by 10.55 per cent to N12.97 trillion from N11.73 trillion in 2018, largely due to sustained primary market activities throughout the year, most notably the listings of MTN Nigeria Communications Plc and Airtel Africa,” he added.

Presenting The Exchange’s efforts in 2020, Onyema said, “The year 2020 has started on a good note, with the NSE ASI recording a 9.41% improvement year-to-date as at January 10. We intend to work closely with our stakeholders to sustain this growth trajectory. As African Champions, we will maintain momentum in executing the NSE’s 2018 – 2021 Corporate Strategy in our efforts to elevate the prominence of Africa’s global financial markets.”